More malls and retail supply are set to come online in Bangkok this year with 300,000 sq. metres of space expected to open, according to research from Colliers International. However, retail operators have struggled to overcome low purchasing power and shoppers preferring to make their purchases online in recent times.
“Shopping malls have multiplied in numbers over the past few years, and currently occupy the highest share in the retail supply in 2017-18. Despite the weak spending power, most hypermarkets, speciality stores and large shopping malls in Bangkok’s suburban areas are currently at a 100 per cent occupancy level,” says Surachat Kongcheep, Associate Director at Colliers International to the Bangkok Post.
Total retail area in Bangkok now measures over 7.6 million sq. metres. This sum includes new project openings that took place in the 1st half of 2017. Over 60 per cent of total retail supply in Bangkok comes from malls and office buildings in the outer city area. There is a total of 4.4 million sq. metres of shopping mall space in the city, shows research from Colliers. Retail occupancy rates stand at 96 per cent and remained nearly unchanged in the 2nd quarter when compared to the previous one.
The most prominent shopping centre opening in 2017 was Show DC and it may be the only large retail complex to open this year. Iconsiam, a 750,000 sq. metre retail space on the Chao Phraya River, was expected to open in 2017, but the launch has been pushed back until 2018, says a source to the Bangkok Post.
Thailand’s economy has not fully recovered and this has hurt many retailers in the country. However, developers see retail projects as long-term investments and will continue to push ahead with new developments. The number of shopping malls in Thailand’s biggest cities is expected to increase as there are several international retailers looking to expand their brand internationally with Thailand seen as a prime destination despite the economy struggling.
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