How has the property market fared this year now we are well into the second half of 2017.
We spoke recently spoke of the growth of Bangkok’s retail market as shopping malls are expanding, but what is happening in other areas of property? Here’s a quick market update for you to take heed of.
Commercial
Well news for the commercial sector remains more of the same. So far this year it has performed well with occupancy rates of 92 percent. This is according to research collected from property consultants Colliers. The theme remains consistent: there is a distinct lack of supply which is driving the market to ensure it is upbeat. The thirst for newer buildings remains strong which is also reflected in recent news that the office set up should really be aimed at keeping employees happy. As such brand new offices are enjoying practically full occupancy levels.
Consequently office rents are increasing. Rising land prices are contributing to this too. For many Grade A buildings rents being achieved are in excess of THB 1,000 per square metre illustrating the sheer force of the market. Colliers predict that there will not be a slowdown anytime soon least of all because of the lead up time it takes to replenish supply.
Residential
The residential market has stepped up a gear. Colliers have noted that there was a 30 percent increase in the number of new condominium units for the second quarter of 2017 than if compared to the first. Many developers put the brakes on launches at the back end of 2016. The state of the economy and the mourning of the late King cited as reasons for this.
Colliers expect the second half of this year to tell a similar story in terms of supply. They predict an overall increase of supply for 2017 of 15 percent if compared to last year. Developers are being astute to building to meet demand and eyeing up potential in a bid to profit. The luxury market continues to perform well with even some record breaking prices being achieved. But similar to last year, some developers have held back on launching projects. Some want to see how the market pans out. But most notably waiting for October when the Royal cremation is due to take place.