Bangkok's office market is undergoing a period of rapid transformation, yet the impacts of rising supply and shifting tenant demands are far from uniform across the city. While the broader market faces headwinds from a record supply pipeline and evolving workplace trends, certain properties and zones are well-positioned to thrive.

After the next three years, supply pressures are expected to ease, and the momentum of companies onboarding employees back into the office will provide opportunities for well-located, high-quality buildings to outperform. This divergence underscores the importance of adaptability, innovation, and understanding nuanced market dynamics in navigating the challenges and opportunities ahead.

One area poised to benefit from these shifts is the Ploenchit-Chidlom-Wireless corridor, a prime office location that consistently attracts multinational corporations and high-profile tenants. With its central positioning, exceptional connectivity via public transport, and a concentration of Grade A and green-certified buildings, the area remains highly competitive despite the influx of new supply across Bangkok.

The Ploenchit-Chidlom-Wireless area, Bangkok's second-largest sub-market, comprises 38 office buildings with a total net lettable supply of 940,000 sqm. While the occupancy rate has declined from a peak of 95% in 2019 to 76% today—aligning with the Bangkok-wide average—a closer examination reveals a story of resilience and continued growth. Over the past five years, the area has experienced a remarkable 30% increase in office supply, adding 220,000 sqm—outpacing the CBD's 24% growth. Despite this significant influx of new space, demand has remained robust, with total occupied space rising by 5% during the same period, outperforming the CBD average of just 1%. In addition, the area remains the most premium in the city, boasting the highest market-average asking rent of THB 1,090/sqm/month.

The next five years, leading up to 2029, are poised to be notably different. Limited land availability for both freehold and leasehold developments will result in scarce new office supply in this area. Competition for vacant sites is fierce, with residential and hospitality developers vying for opportunities. Luxury freehold condominiums are commanding prices of THB 600,000 per square meter or more, while hospitality developers are actively seeking locations for luxury hotels and branded residences.

As a result, the Ploenchit-Chidlom-Wireless area’s office market is expected to see limited new supply in the coming years, favoring the landlords of existing high-quality assets. The only project currently confirmed in the pipeline over the next 5 years for the area is CPN Siam Square, slated for completion in 2027 with a projected 25,000 sqm of office space. While there may be other developments in the early stages, they have not yet been officially announced and may be completed after 2029.

Considering a market-average annual supply withdrawal rate of 0.5% and assuming net absorption remains consistent with post-COVID-19 levels (2022-2024), we project that the sub-market occupancy rate will recover to 87% by 2029. In contrast, we estimate that the CBD occupancy rate will be 74%. 

A closer look reveals that performance has varied significantly among office buildings within Ploenchit-Chidlom-Wireless. As highlighted in our office market reports, the "flight to quality" remains a key trend for both office renewals and relocations across Bangkok, and this sub-market exemplifies this fact. 

Several existing premium office buildings that are older than five years continue to perform well, commanding high asking rents and achieving occupancy rates above the market average. Most notably, Gaysorn Tower, Park Ventures, and Siam Piwat Tower all have asking rents above THB 1,300/sqm/month and still manage to achieve occupancy rates above 90%, despite the influx of new supply over the past five years. This demonstrates that such properties can retain tenants due to a combination of prime location, high-quality asset, and robust property management. 

Newer grade A buildings are also achieving strong performance. Notably, One City Centre and Siam Patumwan House, both Grade A office buildings completed in 2023, currently have occupancy rates of 75% and 70%, respectively—slightly below the area average but showing an upward trajectory. Since One City Centre’s completion in Q1 2023, approximately 70,000 sqm of new leasing activity (take-up) occurred in Ploenchit-Chidlom-Wireless. These two projects have collectively leased approximately 52,000 sq m of office space, accounting for 74% of the total take-up in the area during this period. The projected limited supply, combined with the area's established appeal and premium positioning, will likely drive further appreciation in value for such top-tier office spaces. 

Mr. Nattha Kahapana, Managing Director of Knight Frank Thailand, said:"The office market in the Ploenchit-Chidlom-Wireless corridor is on track for a strong recovery, with occupancy rates projected to rebound to 87% by 2029—well ahead of the CBD average of 74%. One City Centre (OCC) is a standout asset in this sub-market, and we’re expecting its occupancy to reach 90% within 2025."

He added: "Raimon Land PLC’s decision to divest OCC to a REIT highlights the property’s immense investment potential. With its prime location, strong tenant mix, and the overall recovery of the market, OCC offers long-term stability and attractive yields. It’s a rare opportunity for investors seeking premium-grade assets, especially when compared to many leasehold and freehold property funds and REITs currently listed on the Stock Exchange of Thailand."

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