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Rents have fallen for six consecutive quarters together with an improving domestic economy and very limited new ship. This trend will change and rents will rise. There are only two new grade A buildings scheduled for completion. Tenants needing large areas may have very few choices.
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Associated with Q2 2010, the total office supply in Bangkok was 7,978,543 m2, up 1.5% Y-o-Y. No new supply was completed in this quarter. Overall take-up in the Bangkok office market was 6,859,726 m2, up 0.4% Q-o-Q and 1.4% Y-o-Y. The total occupancy rate also improved slightly from 85.6% to 86% in this quarter. The vacancy rate was 14.0%, a fall from the 14.4% recorded in Q1 2010. In Q2 2010, overall rents fell for the sixth consecutive quarter since the beginning of 2009. Grade A offices in the CBD area faced a 0.4% Q-o-Q and a two.9% Y-o-Y drop in rents, down to THB 680/m2 in this quarter from THB 683/m2 in Q1 2010.