Bangkok office space supply up 1.1% in Q2

A total of 79,000sqm of new office space was introduced to the market.

According to Knight Frank, Bangkok's total supply of office space this quarter expanded by 79,000 sq m or +1.1% Q-o-Q. Two new buildings were launched in Q2, including Park Silom on the corner of Silom and Convent Road and The Unicorn, which connected to the Phayathai BTS station. 

Meanwhile, the total lettable area of green office space increased by 6.3% Q-o-Q to 1,340,000 sq m, making up 22% of the total market.

Here’s more from Knight Frank:

In Q2, two new projects outside the central business district (CBD), including AIA Connect on Ratchadapisek Road and V.One Tower on Rama 9 Road, were introduced. Looking ahead, the projected office supply by the end of 2023, 2024, and 2025 is estimated at 368,000 sq m, 480,000 sq m, and 302,000 sq m, respectively. 

The total lettable area of these forthcoming developments is expected to reach 1.59 million sq m, representing 27% of the current office supply. Of this upcoming supply, 64% is concentrated within the CBD.

Demand

The office market in Q2 2023 demonstrated a robust net absorption figure of 53,000 sq m compared to 39,500 sq m in Q1 2023. This favourable trend continued over the past year, with the market's net absorption reaching 160,000 sq m, surpassing the pre-COVID levels. Notably, green buildings accounted for the entirety of this expansion, with a net absorption of 53,400 sq m, indicating a preference for sustainable leasing options.

During this quarter, the central business district (CBD) experienced a notable surge in demand for office spaces, largely attributed to the occupancy of newly constructed buildings. The net absorption for properties in the CBD stood at 38,100 sq m, whereas non-CBD properties experienced a lower net absorption of 14,900 sq m.