Central Business District (CBD) office rents in Hong Kong are about THB 5,000 per square metre per month, compared to THB 680 per square metre per month in Bangkok. Tokyo is in second position at THB 3,329 and the Nariman Point district in Mumbai is in third position at THB 2,900 per square metre per month.
Most cities in Asia saw an increase in demand with falling vacancy rates and rising rents. Beijing office rents rose by over 40 percent, compared to the first quarter of 2010. Core Central rents rose by almost 40 percent in Hong Kong and Singapore by 28.4 percent year-on-year.
Bangkok office rents remained flat with virtually no change over the last 12 months while Vietnam was one of the few countries where office rents fell. Ho Chi Minh City saw a 12 percent decline and Hanoi 8.5 percent. Bangkok office rents are some of the cheapest in Asia, with only Manila and Jakarta being lower.
There is almost eight million square metres of completed office space in Bangkok with only 270,000 square metres of new buildings due to be completed by the end of 2014.
“We are starting to see some increase in demand driven by the overall strength of the Thai economy,” stated James Pitchon, Executive director of CBRE Thailand. Annual new demand for Bangkok office space fell from 2006 to 2009 and improved slightly in 2010, but it is still well below the levels seen between 2000 – 2005.
“If we see a return to the level of demand that we saw between 2000 – 2005, then we could see rents rise significantly as vacancy rates fall, particularly for the best grade A buildings,” said Nithipat Tongpun, executive director of Office Services at CBRE Thailand.
*Q4 2010 figures
Source : CBRE’s Asia Pacific Office MarketView Q1 2011