Bangkok Office Market Strongly Recovering
As a matter of fact, office vacancies went down and rental fees increased from Q2 to Q3 2014. According to JLL in its Asia Pacific Property Digest Q3 research report, the overall vacancy rate decreased from 8.2% in Q3 down to 7.8% in the last quarter of the year as a result of a stronger economy following military coup in May.
Another promising sign of the Bangkok office market’s welfare is the impressive amount of office spaces being built at the moment. In fact, confidence is strong and several huge business towers are under construction at the moment such as:
- Bhiraj Tower (47,442sqm of office space expected to reach completion in Q1 2015)
- AIA Sathorn Tower (38,500 sqm building reaching completion in Q2 2015)
- The mixed-used Magnolia Ratchadamri Boulevard project development that will feature 6,000sqm of offices in Q1 2015
In the meantime, average gross rents increased by 1.9% up to THB747 per sqm. Plus, the current political climate is thought to ensure the welfare of the Thai economy in the near future. In 2015, GDP is already expected to reach as much as 4.5%, which would definitely lead to strong demand towards Bangkok offices.