Major Development has indicated that in 2019, the office market is thriving, particularly in the Rama 9-Ramkhamhaeng area, which is worth watching. The rental rate exceeds 90%, with rental prices increasing by 7% annually. They are preparing to launch the 'Major Tower' office building under the name 'Major Tower Rama 9-Ramkhamhaeng', a new mixed-use project valued at 2.1 billion baht, located just 600 meters from the Ramkhamhaeng Airport Link station and 300 meters from the upcoming Orange Line subway (Cultural Center-Minburi) expected to open in 2023. The office market is anticipated to continue growing over the next five years, with an additional 766,000 square meters entering the market.

 

 

          Ms. Phetlada Poovoralak, Executive Director of Major Development Public Company Limited, stated that in 2019, the rental office market is expected to grow continuously, both in rental rates and leased space, due to high demand and limited supply. Currently, the office market is no longer concentrated solely in the CBD zones as in the past but is expanding beyond Silom, Sathorn, and inner Sukhumvit due to urban expansion and the emergence of various infrastructures and transportation modes.

 

          The area to watch is Rama 9-Ramkhamhaeng, which has a very high demand for office buildings, with a rental rate of 90%. The rental prices for new office buildings in this area are continuously increasing, averaging a 7% rise per year. The Rama 9-Ramkhamhaeng area is a new potential location, close to the city center and at the intersection of business districts like Ratchada, Thonglor, and Sukhumvit. It is also conveniently accessible, near the Airport Link, motorways, and expressways, as well as leading hospitals like Samitivej Srinakarin Hospital and Ramkhamhaeng Hospital, and important educational institutions such as Assumption University, Ramkhamhaeng University, and Stamford International University. Furthermore, there will be continuous growth in the future, with a mixed-use complex set to be launched in 2-3 years, renovated from The Mall Ramkhamhaeng, which will significantly energize the area. Additionally, three new subway lines are being developed: the Yellow Line (Lat Phrao-Samrong), the Light Red Line (Bang Sue-Hua Mak), expected to be completed and operational in 2020, and the Orange Line (Taling Chan-Minburi), expected to be completed and operational in 2023. Once all three subway projects are finished, they are expected to greatly enhance the area's completeness.

 

 

          Ms. Phetlada  stated, "Major Development recognizes the potential of the Rama 9-Ramkhamhaeng area, thus preparing to develop a Grade A office building under the brand name ‘Major Tower Rama 9-Ramkhamhaeng’ valued at 2.1 billion baht. This mixed-use project will consist of office buildings, condominiums, and retail space, covering approximately 25,000 square meters, located just 600 meters from the Ramkhamhaeng Airport Link station and 300 meters from the Orange Line subway. The project is developed under the concept of ‘Boutique Art Gallery’, designed to create the dream office for the new generation that meets quality work needs, expected to launch in the fourth quarter of this year, and is anticipated to receive a positive response similar to the first project ‘Major Tower Thonglor’ in Thonglor Soi 10, which has been highly successful with a 100% occupancy rate."

 

          Regarding the office market trend, it is expected that in the next five years, there will be a significant increase in supply, with approximately 766,000 square meters of new office space available for rent. The trend in the office market indicates a high demand for mixed-use projects, as they represent a new real estate model that combines residential projects, office buildings, shopping centers, hotels, and even entertainment, especially in the central business district, providing a new option for residents seeking convenience.

 

Thank you for the information from  www.mjd.co.th