2025-03-11-莱坊-Bangkok_Office_Market_Q4_2024_8页_1mb

Bangkok Office Market Summary: Q4 2024

Economic Context

The Thai economy is projected to grow by 2.7% in 2024 and 2.9% in 2025. The Business Sentiment Index (BSI) remained on an upward trajectory, supported by tourism and service sector recovery, despite a slight decline in Q4 2024 due to heightened global and domestic uncertainty, including U.S. policies affecting trade and growth.

Supply Analysis

Bangkok's office market maintained a stable total supply of 6.31 million sq m in Q4 2024, with no additions or withdrawals quarter-on-quarter. Over 2024, supply increased by 235,000 sq m. The future supply pipeline stands at 1.0 million sq m, with an anticipated high of 540,000 sq m in 2025.

Demand Analysis

Leasing activity remained strong, with net absorption of 48,000 sq m, maintaining occupied space at 4.86 million sq m. Green buildings attracted significant demand, with a net absorption of 50,000 sq m compared to a marginal decline in non-green buildings. Both CBD and non-CBD areas reported positive absorption.

Market Dynamics

The overall occupancy rate rose to 77%, driven by gains across all building grades, with Grade A (76%) showing the strongest rebound due to preference for quality spaces. Average asking rents held steady at THB 842/sq m/month overall, with Grade A reaching a new high of THB 1,246/sq m/month. CBD and non-CBD submarkets showed modest rental and occupancy increases.

Outlook

The market faces supply pressures in 2025 with a projected influx. Landlords must strategically position assets, particularly Grade A properties, which benefit from tenant demand for high-quality, amenity-rich environments. A key trend is the return to traditional office setups amid evolving workplace preferences.