Bangkok office supply totaled 8.95 million square metres at the end of Q1 2019, increasing by 1.9% Y-o-Y, according to CBRE Research.
Three office buildings were completed with a combined net area of 78,000 sq. m.; True Digital Park, MS Siam Tower, and Ladprao Hills.
The overall vacancy rate increased from 6.6% in the previous quarter to 7.5% in Q1 2019. The total net take-up (growth in total occupied space) was at 41,000 sq. m., decreasing by 36.1% Y-o-Y.
Future office supply continued to rise in Q1 2019 with construction starting on six more projects. Around one million sq. m. of new office space was under construction, increasing from 0.87 million sq. m. the previous quarter. This new space will be completed between Q2 2019 and 2022.
About 60% of total space under construction in Bangkok will be Grade A office space for rent in the CBD including Mitrtown Office Tower, The PARQ (Phase 1), Vanissa Building, the Unicorn, O-NES Tower, EmSphere, One City Centre, and the first phase of One Bangkok.
With around 1.2 million sq. m. of office space still at the planning stage where sites have been acquired, CBRE expects to see more construction starts. This will increase the projection of future supply beyond 2021.
Although there is a lot of space under construction, most of it will be completed after 2021, meaning options will remain limited between 2019 and 2020. Mitrtown Office Tower and the PARQ (Phase 1) will be the only two Grade A office buildings in the core CBD due for completion in 2019 and 2020, respectively.
“Tenants who need space during this period will need to plan ahead because of limited choices” says Ms. Roongrat Veeraparkkaroon, Head of Advisory & Transaction Services – Office at CBRE Thailand.