Key Highlights of Bangkok's Office Market Outlook for Q3 2024
Total Grade A office inventory in the CBD area expanded to 2.34 million sq m in Q3 2024, up from 2.32 million sqm in Q2 2024, an increase of 0.8%. The completion of the new Supalai Icon office project added 19,286 sqm ofGrade A supply in the CBD market. The overall vacancy rate remained unchanged at 26.3% in Q3 2024, up from25.4% in Q2 2024.
New Grade A supply scheduled for the CBD market in Q4 2024 includes One Bangkok Tower 5, and APAC Tower,together adding leasable office space of 129,000 sq m.
Average overall Grade A gross rents remained stable in Q3 2024 at THB936 per sq m per month. Rental levelsare expected to further stabilize in the upcoming quarters. There will be new office supply entering the BangkokGrade A office in the CBD area in Q4 2024.
Senior Market Analyst, Thailand, Sarawut Tikhachon said future office supply tracked by Cushman & Wakefieldshows that a new supply influx of approximately 825,565 sq m will enter the overall Bangkok market from Q4 2024to 2027. A total of 438,430 sq m, or nearly 53% of the new supply, will be in the CBD areas. Rising office inventorywill increase overall vacancy rates and exert downwards pressure on office rental levels over the coming quarters.
