The office space market will continue to be robust over the next two years, with rents breaking historical records and demand expected to rise after the 2019 general election, according to property consultant Knight Frank Thailand.
Marcus Burtenshaw, executive director and head of occupier services and commercial agency, said the general election will spur demand for new office space, though the effect will not be immediate.
"The world is moving to more merger and acquisition activities. This will stimulate office relocation," he said. "A new wave of technology will come to change occupational demand. Co-working and serviced spaces will be a growing trend."
He said sustained strong demand amid tight supply has resulted in rent growth since 2004 of 73.9%. New supply that will become available from 2020 may help keep the pace of rent increases in check.
According to Knight Frank's market research, new office supply being completed during 2019-23 will total 842,794 square metres. The bulk will come on the market in 2021, 286,000 sq m that will account for 34% of total supply in the pipeline.
In 2019, there will be four new office projects completed with total office space of 191,609 sq m.
The four will include CP Tower 4 in North Park on Vibhavadi-Rangsit Road with 48,901 sq m, developed by CP Land, a property arm of CP Group.
In the Ratchathewi area, Aspiration One Co, a joint venture between Aira Capital Plc, Sena Development Plc and Sangfah Construction Co, is developing Spring Tower with 27,518 sq m of office supply for 2 billion baht.
The other two will be on Rama IV Road: Samyan Mitrtown near Sam Yan station with 45,000 sq m and The Parq near Queen Sirikit National Convention Center station with 71,000 sq m. Both are developed by firms owned by the Sirivadhanabhakdi family.