Sathorn area has some of the most sought-after office space in Bangkok. (Bangkok Post file photo)

Bangkok has some of the cheapest office space in the world, ranked 109th among 126 major cities surveyed in 2016 by international consulting firm CBRE.

In its latest Global Prime Office Occupancy Costs survey in March 2016, the company ranked Hong Kong as the most expensive office location.

Asia continued to dominate the list of the world’s most expensive office locations, accounting for seven of the top ten markets worldwide including China, Japan and India. (continues below)

Although the average rent for prime Grade A offices in Bangkok’s central business district has increased by 6.6% year-on-year and is among the top 25 annual rental increases, Bangkok has been ranked almost at the bottom, dropping four notches from 105th in 2015. 

The average prime Grade A rent was 959 baht per square metre per month, roughly one-tenth the cost in Hong Kong (Central) - the world’s priciest market. The rent in Thailand has risen from 900 baht in 2015.

“Bangkok office demand has remained strong despite the weak economy and this, combined with the limited amount of new space completed, will continue to push up rents,” said Nithipat Tongpun, head of office services, CBRE Thailand.

"We expect the global economy to keep growing, and the global service sector, the primary occupier of prime office properties, will continue to expand through periods of volatility," said Richard Barkham, CBRE's global chief economist.

The service sector should show particularly strong growth in Asia as pensions and insurance products gain market share so occupancy cost growth will continue to trend upwards at a moderate pace.

“With low vacancy rates and lack of prime space in Hong Kong, this has allowed landlords to push rents upwards,” said Henry Chin, head of research, CBRE Asia Pacific.

“Mainland Chinese financial firms have been seeking prime office space in Hong Kong to support their overseas business expansion and to cater for the clients’ needs to manage their capital outside China.”