The oversupplied Bangkok office market will take at least five years to return to a balanced state, with several projects postponed without a definite timeline, according to property consultancy Cushman & Wakefield.
Aukit Pronpattanapairoj, head of office leasing, said the oversupply in Bangkok’s office market has led to construction delays for some new projects and more intense price competition among newly launched ones.
“The projects that have postponed construction are mostly large-scale developments, with a combined lettable area of at least 200,000 square metres, which were previously expected to add new supply between 2025 and 2028,” he said.
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The largest supply would come from One Bangkok on Rama IV and Wireless roads, offering 150,000 square metres at Signature Tower, which, at a height of 430m, will become the tallest building in the country on completion. The project was originally scheduled for completion in 2028.
Another project is phase two of The Parq on Rama IV and Ratchadaphisek roads, contributing 50,000 sq m, which was initially planned for completion between 2024 and 2025.
Both projects have delayed construction indefinitely as they need to fill existing supply within their developments first.
Due to the oversupply, price competition to attract new tenants and retain existing ones has intensified, with discounts reaching up to 30% among new projects completed in the past two years.
Some office landlords are also offering 6-7 months of free rent for three-year contracts, Mr Aukit added.
Source: Bangkok post
