bangkok office market report q2 2012
TRANSCRIPT
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7/31/2019 Bangkok Office Market Report Q2 2012
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Q1 2012 - Q2 2012
new Supply
demeand
reantalS
occupancy
thailand
.s..
Bangkok Ofce Market
highlightS
Mre tha 70% the existi ce buildis
were supplied t the maret i the 1990s, aperid ecmic rwth attributable t a
sure i mauacturi exprts. This is i star
ctrast t the mere 2% added i the ve years
llwi the eects the Asia Fiacial
Crisis (AFC). Eve with the pic-up i thesecd hal the decade, ly 13% the
supply appeared duri the rst decade the
cetury.
Q2 2012 | oice
market indicatorS
total Supply added in each five-year period
Surce: Clliers Iteratial Thailad Research
BAngkok oFFICE MARkET REPoRT
oe ce buildi cmpleted i Q2 2012 with
a ttal area arud 20,000 sq m was added
t the maret.
The averae ccupacy rate ad rets i all
lcatis remai similar t the previus
quarters. Althuh there has bee a sliht rise
rm the previus quarter i sme ce
buildis, t much eect has bee elt acrss
the wider maret.
Ba is hihly attractive r ivestrs wh
wish t tae a rst ivestmet step it ASEAn,
especially the sub-rei Myamar, Las
ad Cambdia. As a result, several iteratial
cmpaies are li r reial ce space
i Ba.
The ew Ba Tw Pla is aimed at
ecurai the expasi Bas
busiess area t ce buildis i late
Suhumvit areas ad t the rth al
Ratchadapise Rad.
hiStorical Supply
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The ttal ce supply at the ed 2012 will be apprximately 8,105,000
sq m. The Ba ce supply has rw slihtly ver the past te
years. Mre tha 85% the ttal supply r mre tha 6,860,000 sq m
ce space were cmpleted bere 2000 which meas that the ce
buildis i Ba are mstly lder tha 10 years. Sme buildis
ctiuusly revate ad uprade their acilities, while sme lac
maiteace.
Apprximately 20,000 sq m were cmpleted i Q2 2012 ad mre tha
87,000 sq m i ttal supply are scheduled t be cmpleted ver the
remaider 2012. Ruhly 94,000 sq m ce buildi space were
cmpleted aually rm 2000 t 2008 while mre tha 615,000 sq m
were cmpleted per year rm 1991 - 1999.
Surce: Clliers Iteratial Thailad Research
Remar: F = Frecast at the ed the year
Surce: Clliers Iteratial Thailad Research
Remar: F = Frecast at the ed the year
hiStorical Supply by year, Q2 2012
additional Supply for each year, Q2 2012
COLLIERS INTERNATIONAL | P. 2
Bangkok oice Market rePort | Q2 2012
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Supply by location, Q2 2012
COLLIERS INTERNATIONAL | P. 3
Surce: Clliers Iteratial Thailad Research
nearly 80% the ttal supply is lcated i the area al existi mass
trasit lies. 36% the ttal is lcated i the CBD, llwed by the
nrther Frie with arud 20%. I the ext tw t three years the
prprti i the nrther Frie area will raise t 22% Bas
ttal as may ew ce buildis are uder cstructi ad plaed
r cmpleti i 2014.
Bangkok oice Market rePort | Q1 2012
cumulative future Supply by location
future Supply
Surce: Clliers Iteratial Thailad Research
nearly 330,000 sq m ce space are scheduled t be supplied iBa by 2014 i ly ur zes. The nrther Frie area will tae
a hih prprti the ttal supply as early 210,000 sq m are scheduled
r cmpleti i 2014 i the area, but this represets ly a 2.6%
icrease rm the ttal existi supply. This limited additial space tthe maret will be absrbed ad pit the way t reater ccupacy
levels ad stretheed retal rates ver the ext ew years.
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The averae ccupacy rate i all lcatis Ba is hiher tha
80%. The outer City West ad outer CBD areas had the hihest
ccupacy rate i Q2 2012 while the outer City nrth was the lwest
ad remaied the same as the previus quarter. Althuh the averae
ccupacy rate i the outer City West area was hihest, the ttal supply
i this area is ly 258,000 sq m ad it is less tha the CBD area that
has ver 2,625,000 sq m.
Bangkok oice Market rePort | Q2 2012
occupancy rate by location, Q2 2012
demand take-up
Surce: Clliers Iteratial Thailad Research
occupancy rate in three locationS, Q1 2010 Q2 2012
occupacy rates i the three mai lcatis still remaied similar t Q12012, just a sliht icrease rm the previus quarter. The averae
ccupacy rates i the outer CBD ad nrther Frie areas were
hiher tha i the CBD area, due t these tw zes bei lcated al
mass trasit rutes ad eri cheaper rets.
Althuh apprximately 20,000 sq m were cmpleted i Q2 2012, mst this space is ccupied by wers ad thus there is miimal impact
the ce maret.
Surce: Clliers Iteratial Thailad Research
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Bangkok oice Market rePort | Q2 2012
The averae ccupacy rate r ce buildis i Ba ctiues t
rw with ew supply added t the maret i Q3 2011. other ce
buildis cmpleted ater these tw buildis did t aect the ce
maret as a whle as they were ly small prjects. With mdest rwth
predicted r the cmi tw years ad ive the limits ew supply,
Clliers Iteratial Thailad predicts a radual but sustaied rise i
ccupacy rates rm 2012 util 2013. This will i tur lead t a certai
hardei retal rates i rward.
actual and future eStimate of occupancy rateS
Surce: Clliers Iteratial Thailad Research
newly regiStered firmS from January 2009 - may 2012
demand driverS
Surce: Departmet Busiess Develpmet ad Clliers Iteratial Thailad Research
Based the statistics rm the Departmet Busiess Develpmet,fds i the last quarter 2011 als aected the umber ew
cmpay reistratis last nvember. nearly 3,500 cmpaies were
reistered i April ad May 2012, ad apprximately 9,880 cmpaies ithe rst ve mths 2012, apprximately 10% lwer tha the same
perid last year.
Future
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The averae retal rate i the CBD area remais the hihest. It is
apprximately 49% hiher tha the averae the ttal maret. This is
because mst grade A buildis are lcated i the CBD. Mrever, mst
ce buildis that have cme lie ver the past ew years were
lcated i this area ad they have all icreased their rets t be hiher
tha lder buildis.
Surce: Clliers Iteratial Thailad Research
Bangkok oice Market rePort | Q2 2012
rental rate by location
rental rateS, Q2 2012
rental rate by grade, Q2 2012
Surce: Clliers Iteratial Thailad Research
Rets remaied stable acrss the bard r Q2 2012. This refects the
ctiued lac siicat mvemet i the maret. over the past
three years there has bee discerable chae i ce rets r
grade A ces. This refects the bacdrp plitical ad ecmic
ucertaity. Rates are still uderpied by the lac siicat supply
duri this perid.
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Surce : Clliers Iteratial Thailad Research
hiStorical rental rate in three main locationS, Q1 2010 Q2 2012
The nrther Frie ctiues t ede the outer City i terms ret.
The dierece is eliible. The CBD cmmads the hihest rets by ar.
The nrther Frie ad outer CBD chare arud 75% the CBD
averae ret.
COLLIERS INTERNATIONAL | P. 7
Bangkok oice Market rePort | Q2 2012
hiStorical rental rate by grade
Surce: Clliers Iteratial Thailad Research
The rets grade A ce buildis have remaied stable sice 2007,
while grade B ce buildis recrded a drp apprximately 5 - 6%.
Sme ladlrds er mre avurable terms ad icetives r teats
t maitai ccupacy duri dicult ecmic times, especially r
small busiesses, ad this has adversely aected grade C retals. As
grade C buildis ae, their imae ad acilities becme icreasily
uattractive t teats. owers shuld csider siicat revatis
i a similar ashi t the retail sectr i rder t maitai
cmpetitiveess.
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Lcati is still the ey actr that aects rets r cmparable prperties.
oces lcated clse t mass trasit statis cmmad a premium ad
may are ewer buildis that wuld usually cmmad hiher rets
ayway. The sharpest dierece ccurs i grade C buildis with
arud a 40% dierece. Mass trasit ly explais part a ce
buildis appeal. Access t expressways ad ther supprti acilities
i the area culd be equal ly r eve mre imprtat r teats.
Surce : Clliers Iteratial Thailad Research
rental rate of office buildingS in bangkok by diStance from btS / mrt (metreS), Q 2 2012
Bangkok oice Market rePort | Q2 2012
outlook
The nrther Frie area will becme a ew busiess area i the ear
uture with mst ew ce buildis i the pipelie lcated al
Ratchadapise Rad. Mrever, this area als has shppi malls,
etertaimet zes, hypermarets, ce buildis ad ther supprti
acilities, as well as MRT statis.
The ce buildi maret is healthier tha last year due t icreasi
demad ad limited ew supply. new iteratial cmpaies are
eteri Thailad ad als may existi cmpaies are expadi r
plai t expad their ces. The prspect the AEC i 2015 ad the
pei up Myamar are als a actrs i raisi demad r ce
buildis i Ba because Thailad is see as a icreasily
imprtat reial cetre r cmpaies with peratis i the sub-
rei, that is Myamar, Las ad Cambdia.
The ew Ba Tw Pla aects t ly the cdmiium sectr
but als the ce maret. The latest drat 24 May 2012 des t
permit ce buildis larer tha 10,000 sq m rads arrwer tha
30 m i certai lcatis Ba althuh these are permitted i
ther lcatis utside the CBD ad outer CBD area. This idicates that
the ew tw pla is tryi t expad the busiess area t late Suhumvit,
Ratchadapise ad Phahythi Rads. The Departmet City
Plai Ba Metrplita Admiistrati has still t alised the
ew Ba Tw Pla as the secd quarter 2012. A
aucemet is expected by 21 Auust 2012, althuh it culd later be
revised ad alised withi this year r ext.
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appendiX
Bangkok oice Market rePort | Q2 2012
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Bangkok oice Market rePort | Q2 2012
office Zoning
The eeral lac zi restrictis i Ba has led t the existece
siicat ce supply i a wide rae lcatis i the city ad t
hw the maret perceives that the CBD has evlved ver the past 20
years. The riial CBD was Silm ad Surawse Rads, hme t
the vibrat ld maret ad ther tradi busiesses. The develpmet
mder ce buildis i the 1990s with larer fr plates culd t
be accmmdated i this area, ad the CBD bea t tae shape i the
easter secti Sathr Rad.
While Suhumvit Rad up t Ase is primarily perceived as a
etertaimet ad residetial area, a lare umber grade A buildis
spra up i the 1990s ad als i the past ew years. It is therere
csidered part the CBD. As a wri deiti, the CBD, r the
purpses ce classicati, is where a siicat umber grade
A ce buildis are lcated. As such, the ld CBD is w csidered
the outer CBD, icludi Petchburi Rad where mre grade B ces
are lcated. over time, this structure culd evlve.
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Bangkok oice Market rePort | Q2 2012
collierS international thailand
management team
oFFICE & InDUSTRIAL SERVICES
narum Rdsiravraphat | Assciate Directr
PRoJECT SALES & MARkETIng
Mchai orawpaisa | Assciate Directr
RESIDEnTIAL SALES & LEASIng
napaswa Chtephard | Maaer
RESEARCH
Ty Pic | Assciate Directr
Surachet kcheep | Seir Maaer
RETAIL SERVICES
Asharawa Wachaat | Assciate Directr
ADVISoRY SERVICES | HoSPITALITY
Jea Marc garret | Directr
ADVISoRY SERVICES
napatr Tiechutima | Assciate Directr
REAL ESTATE MAnAgEMEnT SERVICES
Prasert Saiphrawa | Seir Maaer
InVESTMEnT SERVICES
nuar Suwatiul | Assciate Directr
Wasa Rattaaijjauul | Seir Maaer
VALUATIon & ADVISoRY SERVICES
Phachsau Phrmthaauta | Directr
Waida Susuwa | Assciate Directr
PATTAYA oFFICE
Mar Bwli | Seir Sales Maaer
Supaee Starjitsi | Seir Busiess Develpmet
Maaer / oce Maaer
HUA HIn oFFICE
Suchai kaachai | Seir Maaer
reSearcher:
ThailadSurachet kcheepSeir Maaer | Research
email [email protected]
522 ces i 62 cutries 6 ctiets
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