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CB Richard Ellis Reports Bangkok Offices Take Up Improves But Still Lower Than 2006
The total amount of office space leased in Bangkok increased quarter-on-quarter, but the total amount of space leased is the first half of 2007 was 37% lower than the first half of 2006 according to the latest Bangkok office market research published by CB Richard Ellis.
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Bangkok, Thailand (FPRC) October 24, 2007 -- The total amount of office space leased in Bangkok increased quarter-on-quarter, but the total amount of space leased is the first half of 2007 was 37% lower than the first half of 2006 according to the latest Bangkok office market research published by CB Richard Ellis.
The total amount of leased office space grew by 48,499 square metres in the second quarter, compared to 30,326 square metres in the first quarter.
Only one new office building was completed in the second quarter adding 8,300 square metres to the total office stock.
There was no significant rental increase quarter on quarter. "Bangkok is about the only office market in Asia where rentals have not increased, some of the fastest growing markets are Manila, Singapore and Delhi where rents have increased by between 50-100% over the last year," according to Mr. Nithipat Tongpun, Head of Office Services at CB Richard Ellis in Bangkok.
Bangkok is the third cheapest city in Asia for office rents, only Jakarta and Kuala Lumpur have lower office rents and the growth rates in those two cities mean that they could soon overtake Bangkok.
Mumbai has the most expensive office rents in Asia at 5,000 baht per square metre per month seven times more expensive than Bangkok.
Four new office buildings will be completed in Bangkok by the end of 2007 including Athenee Tower on Wireless Road and a further for buildings are scheduled for completion in 2008.
The average occupancy rate of offices in Bangkok is 87.5% despite the current weak demand conditions. A small increase in demand could result in rents increasing as there is only a limited amount of future supply, due to be completed in the next two years.
About CB Richard Ellis
CB Richard Ellis Group, Inc. (NYSE:CBG), an S&P 500 company headquartered in Los Angeles, is the world's largest commercial real estate services firm (in terms of 2006 revenue). With over 29,000 employees, the Company serves real estate owners, investors and occupiers through more than 300 offices worldwide. In 2007, CB Richard Ellis was named one of the 50 "best in class" companies by BusinessWeek, and one of the 100 fastest growing companies by Fortune.
CB Richard Ellis established an office in Bangkok in 1988 and in Phuket in 2004. CB Richard Ellis (Thailand) Co., Ltd. has grown to be a leading real estate services provider, offering strategic advice and execution for sales and leasing for all types of property, property and facilities management, valuation and advisory, and research and consulting. For more information, visit the company's website at http://www.cbre.co.th.
Send an email to Ngamjai Jearrajarat of CB Richard Ellis (Thailand)
66 2 654 1111
Keywords:
offices in Bangkok, commercial real estate, Asia office rents
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