Plus Property finds the Si Lom-Sathorn area popular for both offices and residences

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Plus Property finds the Si Lom-Sathorn area popular for both offices and residences, and a surge in demand for co-working spaces.  Meanwhile, yearly returns from resale and rental of condominiums stand at 4-5%

Plus Property, the full-service professional property and facility management agency, points to windfall being made in the Si Lom-Sathorn area due to the locale’s popularity among office workers.  With 2.1 million square meters of office space, co-working spaces have boomed.  In line with the global tendency, launch of co-working spaces in Thailand has grown by 35% over some 2-3 years and foreign chains have started penetrating the Si Lom-Sathorn area to tap into demand from office workers, start-ups, freelancers and expats in the locale.  Meanwhile, the residential market has found itself with limited space for new projects development – this has resulted in attractive returns of 4-5% per annum for both the resale and rental markets.

Mr. Anukul Ratpitaksanti, Managing Director, Plus Property Company Limited, the full-service professional property and facility management agency, revealed that it has been determined, from Plus Property’s survey of office buildings within Bangkok and its vicinities, that there are 8.6 million square meters of office space.  With roughly 2.1 million square meters of office space (24% of total office space), the Si Lom-Sathorn area was the most popular area for office workers.  The Sukhumvit area, with 1.7 million square meters of space (20% of total office space), came in second.  The Ratchadaphisek area, with 1.2 million square meters of office space (14% of total office space), was the third most popular area.  Aside from being Bangkok’s most prominent office area, the Si Lom-Sathorn area is equipped with numerous amenities that answer to the lifestyle of working-age people.  Said amenities include BTS and MRT stations; almost every road corner in this area has one.  This make the Si Lom-Sathorn area a truly downtown area with easy commuting links to important places.  The area also hosts many co-working spaces – establishments that have been growing in line with the sharing economy trend which has been picking up among office workers.  There is a global tendency for co-working spaces to expand, and this is also the case for Thailand.  There were 1.74 million users of co-working spaces globally in 2017, an expansion of roughly 83% from the year 2016.

The Global Coworking Unconference Conference (GCUC) has provided an analysis predicting that the number of co-working space users will rise to 5.1 million by 2022.  Because of this tendency, co-working establishments have been undertaking expansion to accommodate the increased demand.  The GCUC predicts that the number of spaces will expand to 17,725 in 2018 and an annual growth rate of about 16% for this figure – meaning that the worldwide total should become 30,432 locations within the year 2022.   In Thailand, demand for co-working space became visible after the great floods of 2011 when many people find themselves unable to make their way to office.  There are currently 91 co-working spaces throughout Thailand.  70% of these co-working spaces are in Bangkok and the remaining 30% are in major cities such Chiang Mai, Phuket, Pattaya and Hat Yai.  The daily service fee is between 180-500 baht whereas the monthly fee generally ranges between 3,000 and 7,450 baht.  The business’s flexibility and its on-spot catering to the work demands of the new generation has allowed for a 35% average rate of expansion of branches yearly.  Most recently, major player JustCo has entered the Thai market and launched branches in the Si Lom-Sathorn area to answer to demand from office workers and start-ups in this area.



“Meanwhile, it has been determined that there is limited space for developing new properties to feed the residential market in the Si Lom-Sathorn area.  This has resulted in high demand for residences, for both rent and resale.  Prices of condominiums in this area have risen attractively, with the resale price growth and return on rent both having reached interesting levels.  In the resale market, capital gain stands at 4-5% per year whereas the selling price averaged 230,000 baht per square meter.  Meanwhile, rental yield also stands at 4-5% per year.  Rent is between 800-1000 baht per square meter per month.  The reason behind the Si Lom-Sathorn area’s popularity regarding both residences and co-working spaces is the insufficient supply for general office workers, freelancers and start-ups.  There is also large demand from expats working in Thailand and expats living in business districts.  2017 data indicates there were some 1.2 million expats in Bangkok”, said Anukul.

Plus Property provides first-class property services to those looking to sell or rent out their property. Our highly experienced team also offers professional consultation on request. For additional information on condominiums that provide (the very latest cutting-edge technologies), call 02 688 7555 or click here to find units available for sale.

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