Knight Frank Thailand's analysis for the third quarter of 2024 reveals that office rental rates in the Silom-Sathorn-Rama IV area experienced the highest growth within Bangkok’s central business district (CBD), rising by 7.5% quarter on quarter.
The office-building market in Q3 2024 was driven by a significant increase in supply and a rise in leasing activity. The completion of major projects such as One Bangkok expanded the city's total office space to 6.31 million square metres, highlighting the growing prominence of large-scale mixed-use developments that are reshaping the urban landscape.
Additionally, environmentally certified buildings played an increasingly important role, now accounting for 28% of the total supply. On the demand side, leasing activities grew significantly, nearly doubling compared with the previous quarter, as many tenants transitioned back to full-time office work.
Knight Frank Thailand reported that average rental rates in the CBD rose by 2.4% quarter on quarter, reaching 964 baht per square metre per month. However, the occupancy rate declined to 75%, a decrease of 3.2% quarter on quarter.
Silom-Sathorn-Rama IV:
This submarket recorded the highest rental growth within the CBD, increasing by 7.5% QoQ to 969 baht per square metre.Growth was driven by One Bangkok, which added nearly 200,000 square metres of premium space at a rental price of about 1,500 baht per square metre. However, occupancy rates in this area fell by 6.9% QoQ to 73%.
Ploenchit-Chidlom-Wireless:
Showed stable performance with a slight increase in occupancy rate (up 0.3% QoQ to 76%) and rental rates (up 0.5% QoQ to 1,090 baht per square metre).
Nana-Asoke-Phrom Phong:
Rental rates declined slightly by 0.8% QoQ to 938 baht per square metre, and occupancy rates decreased marginally by 0.3% QoQ to 79%.
Non-CBD Areas:
In non-central-business-district areas, average rental rates remained relatively stable, increasing slightly by 0.2% quarter on quarter to 665 baht per square metre per month. Meanwhile, the average occupancy rate improved, rising by 1.9% quarter-on-quarter to 77%.
Bangna-Srinakarin:
Outperformed other non-CBD areas, with rental rates rising 1.0% QoQ to 618 baht per square metre and occupancy rates surging by 3.8% QoQ to 69%.
Phetchaburi-Rama 9-Ratchada:
Rental rates grew modestly by 0.2% QoQ to 722 baht per square metre, while occupancy rates increased by 0.3% QoQ to 80%, the highest in the non-CBD market.
Phahonyothin-Vibhavadi:
Rental rates fell slightly by 0.7% QoQ to 685 baht per square metre, but occupancy rates rose marginally by 1.5% QoQ to 75%.