Post by account_disabled on Dec 29, 2023 23:45:33 GMT -6
Mr. Marcus Burtenshaw, Executive Director and Head of Brokerage Department, Knight Frank Thailand Company Limited, said: “The growth in rental prices continues to increase. The tenant should adjust the strategy or office rental plan due to the changing economic conditions. Bangkok was once one of the lowest priced office markets in the world. But now the rent of Grade A buildings in Bangkok Instead, they are on par with office rents in cities like Madrid and Chicago.” Office Market Indicators 1 Source: Knight Frank Thailand Economic overview The Thai economy declined in the first three quarters of 2019, recording the slowest growth rate in the past five years. Gross domestic product, or GDP, in the second quarter of 2019 grew only 2.3 percent year-on-year. which decreased from 2.8 percent in the first quarter. The economy slowed down due to both domestic demand and external factors. In the second quarter of 2019, private and government consumption expenditures increased.
But it increased at a slower rate than last year. Flood events in the northern and Industry Email List northeastern regions have a negative impact on domestic consumption. while the ability to compete in exports is lower. which is a result of the trade war between the US-China Including the strengthening of the baht against the US dollar. which increased faster than other competing countries in Asia. The government has issued economic stimulus measures worth 316 billion baht to cope with the economic slowdown and stimulate the economy to grow at 0.5 - 0.6 percent in 2019. Supply Knight's research Frank Thailand in Q3 2019 found that the total supply of office space in Bangkok increased by 49,800 sq m, with a total area of 5,125,617 sq m. Total supply increased 1 percent quarter-on-quarter. And 1.6% year-on-year, one new office building was added to the Central Business District (CBD), covering 45,000 sq m, increasing CBD supply for the first time since Q3 2017. There has been no move out of the old building in this quarter. Over the past five years, net supply has increased to 24,418 sq m per quarter. Graph 1: Office supply in Bangkok.
future supply for future development projects Five buildings are expected to be completed in Q4 2019, adding 127,404 sq m of office space to the market, with four buildings located outside the CBD. However, the economic slowdown and falling demand may encourage developers to Some people have delayed the opening of their projects. From the 4th quarter of 2019 - 2023, the office market in Bangkok is expected to grow to 1,171,829 sq m, or an average of 275,724 sq m per year (which is calculated from Only parts added to the market Moving out is not calculated) If comparing from 2015 - 3rd quarter of 2019, there is new supply entering the market at 139,385 sq m per year. At the end of 2023, the total supply of office buildings is expected to There is up to 6 million sq m. As the new real estate tax adjustment comes into effect in 2020, it is expected that a lot of space will be moved to old buildings. As for commercial real estate, this new tax will adjust the tax rate. The increase went from 0.3 percent to a peak of 1.2 percent, according to the government's estimated price.
But it increased at a slower rate than last year. Flood events in the northern and Industry Email List northeastern regions have a negative impact on domestic consumption. while the ability to compete in exports is lower. which is a result of the trade war between the US-China Including the strengthening of the baht against the US dollar. which increased faster than other competing countries in Asia. The government has issued economic stimulus measures worth 316 billion baht to cope with the economic slowdown and stimulate the economy to grow at 0.5 - 0.6 percent in 2019. Supply Knight's research Frank Thailand in Q3 2019 found that the total supply of office space in Bangkok increased by 49,800 sq m, with a total area of 5,125,617 sq m. Total supply increased 1 percent quarter-on-quarter. And 1.6% year-on-year, one new office building was added to the Central Business District (CBD), covering 45,000 sq m, increasing CBD supply for the first time since Q3 2017. There has been no move out of the old building in this quarter. Over the past five years, net supply has increased to 24,418 sq m per quarter. Graph 1: Office supply in Bangkok.
future supply for future development projects Five buildings are expected to be completed in Q4 2019, adding 127,404 sq m of office space to the market, with four buildings located outside the CBD. However, the economic slowdown and falling demand may encourage developers to Some people have delayed the opening of their projects. From the 4th quarter of 2019 - 2023, the office market in Bangkok is expected to grow to 1,171,829 sq m, or an average of 275,724 sq m per year (which is calculated from Only parts added to the market Moving out is not calculated) If comparing from 2015 - 3rd quarter of 2019, there is new supply entering the market at 139,385 sq m per year. At the end of 2023, the total supply of office buildings is expected to There is up to 6 million sq m. As the new real estate tax adjustment comes into effect in 2020, it is expected that a lot of space will be moved to old buildings. As for commercial real estate, this new tax will adjust the tax rate. The increase went from 0.3 percent to a peak of 1.2 percent, according to the government's estimated price.