The property market in Bangkok is consists of three major sectors – condos, offices and retail. All of these sectors is growing slower but stable in the first six months of this year but the increase in growth is not very far from the same period of last year.
Different parts of Thailand has experienced the construction boom that even boutique hotel in Hua Hin is now available for tourists to stay in. The condominium market is still waiting for the launching of new projects while there is constant growth in office space coming from companies both local and multinational. Majority of the shopping centres still have a 100 per cent when it comes to occupancy rate.
In the capital, the average occupancy rate when it comes to office space is at around 92 per cent while new properties that have been launched in the last two years are almost occupied by 100 per cent. There are still constructions ongoing which only mean that the market is still growing from investors both local and foreign.
One of the main factors that affect the office supply expansion is the increase in prices of land. This is the reason why majority of the projects currently under construction at the CBD of Bangkok are built on plots that are only leased.
In the last several quarters, the rental rates have also increased and it continues to increase in buildings that are given A grades. With these buildings, the minimum rent is over 1,000 baht for every square meter and this is given on a monthly basis.
Some countries may have already felt the effect of online shopping on physical shopping stores but Thailand does not feel any significant change yet. Majority of physical stores in Thailand are also developing their own online shops in order to compete with the times.
In the condominium market, Hua Hin and Cha-am are locations that are expected to launch more condo projects soon. Tourists are already flocking to the districts because of the boutique hotel in Hua Hin and the number is expected to rise as more condo projects are introduced.