Although community malls in Bangkok have grown to take second place in the overall share of the Thai capital’s retail space, many were not successful and ceased trading after less than three years of operations.
New research from Colliers International Thailand revealed that the space occupied by community malls throughout Bangkok grew from 524,370 sqm in 2010 to 962,410 sqm in 2014, an 83 percent increase.
The report also noted how the suburban Bangkok area is the main location for retail business, thanks to the large number of residential projects in the area that are attracting retail projects. Many large-scale shopping malls are under construction and scheduled for completion later this year and in 2016 in suburban Bangkok.
Thanks to strong and growing demand from international and Thai brands, most retail projects are almost fully occupied before their official opening dates, the real estate firm reported.
Colliers predicted that retail rental rates will steadily increase this year, especially in the city area, and that retail rents have continuously increased during the past few years due to the high occupancy rates.
Average rental rates of all locations in Bangkok and its surrounding increased slightly from the previous quarter during the final three months of last year. The city area has the highest rental rate, probably higher than THB3,000 per sqm per month at some shopping malls, noted Colliers.
In conclusion, Colliers said in its research report: “Community malls will continue to grow in number, especially in the Bangkok suburbs, although some community malls were not successful after opening during the past few years. Many older malls will undergo renovations and relocate or re-mix their tenants and add new brands or shops that are suited to the modern lifestyle.”
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
