Bangkok Become Prime destinations for Developers in Southeast Asia
Bangkok may become one of the prime destinations for developers in Southeast Asia due to the city’s inexpensive office spaces. Real Estate Industry experts expect a steady increase in demand for Grade A rent in Bangkok.
“No new Grade A supply was completed in Bangkok during the previous quarter,” Nithipat Tongpun, executive director of office services at CBRE Thailand, told The Nation.” Grade A rents will continue to rise on the back of limited supply and steady demand but the growth rate has now passed the peak.”
Although Grade A central business district (CBD) office spaces in Bangkok reached the lowest levels of vacancy since 2008 in Q2 2013, the cost of property still remains lower compared to other Asian financial centres. Only Wellington and Manila can compete with the office prices in Bangkok, CBRE’s Asia-Pacific Office MarketView stated.
Analysts at Jones Lang LaSalle said that even though Thailand is currently experiencing a economic slowdown, demand for the office spaces in Bangkok has continued to increase.
“The actual impact of the first-half slowdown on the Bangkok office market appears limited,” Suphin Mechuchep, managing director at Jones Lang Lasalle Thailand, told the Bangkok Post.
This limited impact on the office market will only promote a steady take-up of Grade A office space, Suphin added.