In Q3 2019, the condominium market continues to weaken and many developers made strategic adjustments by delaying their launch of new projects to the last quarter of 2019 and 2020. Majority of listed-developers have shown drops in their presale value compared to the previous quarter and previous year. Price discounts and special promotions were being offered from non-listed and listed developers throughout downtown and midtown areas.
In Q3 2019, occupancy rate of hotels in downtown Bangkok was 77.1%, decreasing by 2.6 percentage points Y-o-Y. The Average Daily Rate (ADR) decreased by 1.9% Y-o-Y from THB 3,320 to THB 3,258. Due to the decrease in both occupancy and ADR, RevPAR also decreased by 5.0% Y-o-Y from THB 2,648 to THB 2,515 in this quarter, according to STR.
Bangkok office supply increased from 8.93 million sq.m. in the previous quarter to 8.98 million sq.m. in Q3 2019, a 0.5% Q-o-Q increased due to the completion of Mitrtown Office Tower in this quarter.
The overall vacancy rate increased from 6.9% in the previous quarter to 7% in Q3 2019. The total net take-up (growth in total occupied space) was at 33,812 sq. m., increasing by 6.3% Y-o-Y.