The demand for office space within media, techs and pharmaceutical sectors strengthened within the Asia Pacific Office Market, which was recently discovered as data from Q4 2013 was analysed.
An indication that the office market improved includes a 0.7% decline in overall vacancy in Asia Pacific office space in 2013. Vacancy was down in 15 out of 25 markets within the subcontinent. Additionally, a new supply of 2.06 million sq m. of floor space became available in 2013 as well, a figure which is below the five-year average and the lowest annual volume of new stock completed since 2006.
Bangkok is seeing its best performance since 2006 with impressive annual growth in the amount of occupied space. In 2013 it experienced an increase of 200,000 sq. m. This figure is expected to increase further as the limited future supply is combined with the high level of demand for office space. As a general rule of supply and demand in relation to the real estate industry, tenants will be more likely to commit to new buildings before they are even completed.
For 2014, vacancies are expected to be at historical lows in Bangkok as well as other key Asia Pacific markets, including Hong Kong, Singapore and Beijing. This shows a promising outlook for Thailand as the market demand will not just be determined on the country, its economy and most importantly, it’s political situation alone, but on the entire region.
