 Quality office space in Bangkok is the cheapest in Asia now that the average rent declined quarter-on-quarter for the first time since 2000, according to the international property consultancy CB Richard Ellis.
The average rent for prime office space in Bangkok's central business district is slightly more than 740 baht (US$22) per square metre per month, compared with the equivalent of 2,000 baht in Singapore, 1,480 baht in Ho Chi Minh City and 4,500 baht in Tokyo.
International Financial Centre Tower 2, the highest building in Hong Kong, has attained a record rental of about 7,400 baht.
Nithipat Tongpun, director and head of office and retail services at CBRE Thailand, said the slowing economy was expected to push rental rates in Bangkok even lower in the near term.
The company projects that the downward pressure on rental rates could further increase at the end of the year when new grade-A supply enters the market. There are 520,000 sq m of new supply in the pipeline from 2007 to 2009, or about 173,000 sq m a year.
However, the situation could reverse if business confidence is restored, when new demand would exceed increased supply.
Mr Nithipat said demand had fallen because of a weak domestic economy and uncertainty involving the proposed amendments to the Foreign Business Act to control foreign investment in the services sector.
Many overseas companies have delayed expansion and there has been limited new foreign investment in the services sector.
''This has resulted in occupied offices falling dramatically. New net take-up of office space fell by more than 30% in the first quarter on a year-on-year basis, the lowest quarterly take-up since 2000.''
Source: http://www.asiafocus.info/ |
