Bangkok to welcome two new office projects by year-end

The projects will yield 161,000sqm of new stock.

Two office projects (161,000 sqm) are set to open in Bangkok’s Grade A office market by end-2025, according to a JLL report. Total stock is expected to reach about 1.8 million sqm. 

“Year-end vacancy is anticipated to hit 30%, higher than previously forecasted, due to soft business confidence and incoming supply in the pipeline.”

Here’s more from JLL:

Recent and upcoming supply are expected to drive rental growth, despite a price-sensitive market with occupiers focusing on cost control. Capital values are likely to compress marginally due to tepid investor sentiment.

Demand drops in Q2 as the market faces a slowdown in leasing activity

Bangkok’s prime office market recorded a net absorption of 9,800 sqm in Q2 2025, down 42.9% q-o-q, reflecting slower leasing activity as tenants retained current spaces and adopted a wait-and-see approach following the post-earthquake situation.

New leases during the quarter were mainly driven by newly completed projects, including One Bangkok Tower 4 and Grande Centre Point Lumphini, while the rest of the market saw flat to minimal occupancy gains.

One new project was completed, while the prime office vacancy rate rose to nearly 29%

APAC Tower was completed, adding 32,400 sqm of space to the market. With direct BTS Ekkamai access, it has now achieved around 20% pre-commitment. The total prime stock rose to 1,603,000 sqm.

The prime vacancy rate increased to 28.6% in Q2 2025, up 84 bps q-o-q, driven by new supply and subdued demand. Slower absorption is expected to continue, as older buildings face intense competition and struggle to retain tenants amid the influx of new premium offices.

Prime rent dips slightly; capital values hold steady amid investor caution

Prime gross rents in the CBA declined slightly by 0.4% q-o-q in Q2 2025 to THB 1,025 per sqm, though most buildings retained flat growth. Prime net effective rents likewise fell by 0.3% q-o-q to THB 784 per sqm per month. Rent-free periods averaged two months.

Capital values remained steady q-o-q but rising 3.2% y-o-y to THB 167,000 per sqm. This reflected the ongoing development cost pressures, economic uncertainty, and cautious investor sentiment.