Property Market Grows Despite Recent Political Unknowns

Commercial property market grows despite recent political unknowns

BANGKOK: -- Bangkok's commercial office property market has not been adversely affected by recent political uncertainties, but total leaseholds of office buildings in the business center increased only slightly, according to world leader real estate service Jones Lang LaSalle.

Dan Tantisunthorn, head of Jones Lang LaSalle (Thailand) Co, said the demand for office properties in the city by both Thai and multinational companies still was increasing satisfactorily.

In the third quarter of this year, leaseholds of office buildings in the central business district of Bangkok increased by 26,000 square meters compared with 65,000 square meters for the whole of 2005.

The increase is considered to be low because of a shortage in areas for lease in the district, not due to declining demand.

Mr. Dan said leasing activities had expanded into areas surrounding the CBD including Asok and Sukhumvit where the number of newly-built office properties had increased.

Overall, total leaseholds of office buildingd in both areas is expected to rise to more than 100,000 square meters this year. So, demand in the office building market continues to rise.

"Administrative reform in September has not adversely affected the office building business sector. It has just undermined confidence among companies seeking investment promotions from the Board of Investment," the property executive said, "which could be witnessed by a decrease of 22 per cent in applications for BoI promotional privileges."

--TNA 2006-11-13