Bangkok's office building market

Bangkok’s office building market Q2 2022

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During the last 2-3 years, the Bangkok’s office building market has been impacted by the coronavirus pandemic, often known as Covid 19. As situation, many companies have asked staff to work from home more commonly, so it reducing the need for offices. Combined with other issues, entrepreneurs are shrinking the size of their offices. As a result, several office buildings have had to lower their rates to meet demand. However, since the announcement of COVID 19, being a local disease has also resulted in market dynamics. Bangkok office building slowly recovers.

Today, we will present you about the information from Knight Frank, they published Bangkok’s office building market report for the second quarter of 2022 which has information that there is a gradual recovery but the lowest growth in ten years.

Due to the high level of building material prices, the development of numerous new office projects may be delayed. As a result, just one office building was completed in this quarter. In summary, the overall supply of office space in Bangkok increased by roughly 51,000 square meters (0.9%) this quarter.

Consumers are more confidence and COVID-19 situation has improved, so they are looking for offices in new as well. The most of this will be spend on relocation, mergers and expansion. This led in a slow monthly rent increase of 0.4%, or 1.2% year on year.

Market Dynamics in each area of Bangkok’s office building market Q2 2022

The rental fee of office spaces in Bangkok is increasing. While occupancy rates of central business districts (CBD) are higher than in non-CBD districts.

Reference from :  Knightfrank.co.th

This is data of office rental rate in 2022 compare to the prior year in 2021.

  • Silom area    -2.4  %  
  • Chidlom area   -2.2  %  
  • Asoke area    -4.2  %  
  • Area east from Thonglor : ±  100  % *same level as last year  
  • Bangna area: + 4 % *increase from last year
  • Rama 9 area: ± 100 % *same level as last year
  • Chatuchak area : -3.1 %

The average rate of reduction is -1.12%.

The photo below is compares prices for Bangkok’s office building market in all five areas ( central business district and non-central business district), from 2019 to 2022.

The preliminary data provides the price not the move-in price and updated information in February 2022.

Reference: STARTS International (Thailand) Co., Ltd. 

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