Q4 2012 | office
thailand
Bangkok office Market REPORT
Bangkok Office Market Summary Economic success and bureaucratic delays are driving up the cost of doing business in Bangkok, with office rents likely to rise as demand for space outstrips supply.
market indicators Q3 2012 - Q4 2012 new Supply demand rentals occupancy
By the end of 2012 Bangkok had around 8,042,700 sq m of office space, more than 26,600 sq m of new office space was completed in 2012. However, land on which to build is now both expensive and scarce, and uncertainty over future planning rules has meant that few new offices will be finished this year. The Bangkok Metropolitan Administration’s Department of City Planning has still not finalised the new Bangkok Town Plan, and uncertainty over what it will contain is hindering
all forms of property development in the city. Political stability in Thailand, new investment opportunities in Myanmar and Laos, and preparations for the ASEAN Economic Community in 2015 are all helping to drive demand for office space in Bangkok, with foreign companies choosing the city as a good base for their operations throughout the region. The few office buildings that will be completed in 2013 are all north of the Central Business District (CBD); areas north and east of the CBD are developing in to important business districts in Bangkok as companies seek out cheaper rents in parts of the city with good public transport links.
Historical Supply Historical supply by year, Q4 2012
More than 26,600 sq m of new office space was completed in 2012, and the total Bangkok office supply at the end of the year was approximately 8,042,700 sq m. However, more than 85% of the total supply (6,860,000 sq m) of office space was completed before 2000, which means that most office buildings in Bangkok are more than 10 years old. Source: Colliers International Thailand Research
www.colliers.co.th