Office rental rates in Silom-Sathorn-Rama IV area up in Q3

SUNDAY, DECEMBER 08, 2024
Office rental rates in Silom-Sathorn-Rama IV area up in Q3

Office-building market in Q3 2024 driven by significant increase in supply and rise in leasing activity

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.

Office rental rates in Silom-Sathorn-Rama IV area up in Q3

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.

Office rental rates in Silom-Sathorn-Rama IV area up in Q3

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%.

Thailand Web Stat