Rising Supply Meets Falling Demand

Colliers Thailand has forecasted a significant increase in the supply of office space in Thailand, with an addition of 1.1 million square metres expected over the next three years. This surge comes at a time when demand is on a downward trend, raising concerns about an oversupplied market.

Current Market Overview

As of the fourth quarter of 2024, Thailand boasts 10.266 million square metres of office space, marking a 3.79% increase from the previous year. However, the occupancy rate has dipped to 86.86%, signaling potential challenges ahead for developers.

Potential Growth Sectors

Despite the current market dynamics, sectors such as e-commerce, financial institutions, and co-working spaces are identified as potential drivers for increased demand for office spaces.

Challenges and Recommendations for Developers

With the market becoming increasingly competitive, Colliers Thailand warns that developers may find it difficult to attract tenants through price reductions alone. The firm suggests that developers focus on enhancing the value of their properties by increasing common use spaces, organizing events to attract more visitors, and integrating new technologies to improve tenant convenience.