According to real estate firm CBRE in its latest Bangkok Office Marketview research report, the total office supply in Bangkok increased to 8.2 million sqm, a 1.1 percent increase quarter-on-quarter and a 1.6 percent increase year-on-year.
The overall vacancy rate in the Thai capital was reported by the firm as 9.7 percent in Q2 2014, rising by 0.5 percentage points quarter-on-quarter but dropping by 1.4 percentage points year-on-year.
This, it noted, was the first quarter that vacancy rates rose after falling for ten consecutive quarters – but this was due to the increase in supply which CBRE expects will be occupied over the next two quarters. The grade ‘A’ central business district vacancy rate in Bangkok was 7.2 percent.
The total net take-up for the whole market was 37,400 sqm, decreasing by 32.7 percent quarter-on-quarter and by 26.5 percent year-on-year.
Overall, 7.43 million sqm was occupied, up by 0.5 percent from the previous three months and up 3.2 percent year-on-year. The occupancy rate dropped slightly to 90.3 percent this quarter, from 90.8 percent in the previous quarter, CBRE noted.
“We expect the situation of tight supply and falling vacancy rates will continue so rents are expected to increase further in the future but at a slower rate.
“Average achieved rents in Bangkok increased by an average of 5 percent year-on-year in every grade and every area,” the report concluded.”
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
