Prime office rental prices in Bangkok rose by a mere 0.1 percent in Q2, according to the Asia-Pacific Prime Office Rental Index published by Knight Frank
The index declined 0.7 percent overall in the second quarter of 2014, despite a 0.3 percent drop in the regional vacancy rate.
Nicholas Holt, Head of Research for Asia Pacific, said: “Q2 registered little rent movement, demonstrating less volatility than the previous quarter. Ten of the 20 markets tracked this quarter saw less than 0.5 percent rental movement, compared to six markets in the previous quarter.
“Only three markets – Phnom Penh, Sydney and Singapore – saw more than 0.5 percent rental growth in Q2 2014 despite significant increase in net absorption and a decline in vacancy rates.”
Of the 20 markets tracked, eight of the prime office markets saw prime rents soften in Q2 2014, with eight equally seeing rental growth; four markets recorded no rental movement.
Phnom Penh registered the highest growth at 3.8 percent whilst Hanoi saw the largest decline at -4.1 percent.
The real estate firm noted that over the next 12 months, rents in 14 cities out of the 20 tracked are expected to either remain steady or increase, which is in line with its previous forecasts.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
