Rental rates in Bangkok’s central business district have now reached an all-time high.
Real estate firm JLL reported that as at the end of June 2014, average monthly gross office rents reached THB475 per sqm per month across Bangkok, and THB739 per sqm in prime grade buildings in the central business district, representing all-time highs.
It also noted that some prime grade buildings were asking much higher rents, ranging between THB900 and THB1,300 per sqm.
Reporting on the outlook for the second half of 2014, JLL noted there are three office development projects planned for completion in the second half of this year, including SJ Infinite 1 (formerly Equinox Phahol-Vibha) on a corner of the Phaholyothin-Vibhavadee intersection, AIA Capital Center at the MRT Thailand Cultural Centre station and Bhiraj Tower at the BTS Phrom Phong station, which will bring the total office supply to 8.31million sqm.
While these projects have healthy pre-commitment levels, the agency noted, their introduction into the market is expected to cause a short term increase in vacancy as the new space fills in.
“With a more stable and predictable political situation in recent months, business sentiments in Thailand have improved, which will likely stimulate demand for offices in Bangkok that was pent up in the first half of 2014. This, coupled with tight supply, will allow office rents to rise further in the remainder of the year,” concluded Yupa Sathienpabayut, Director of Office Leasing at JLL.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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