Retail rental rates in Bangkok are as much as 40 times cheaper than those in Hong Kong, according to new research from CBRE, and that’s despite a rise in rates in the kingdom during the second quarter of the year.
“Rental rates in Bangkok increased in the best shopping malls, especially in the downtown area,” said Jariya Thumtrongkitkul, Head of Retail Services at CBRE Thailand.
CBRE’s latest quarterly ranking of the top 10 prime global retail markets saw little change relative to previous quarters; however four of the top 10 markets – New York, London, Zurich and Tokyo – saw quarterly increases in prime retail rents, compared with only one market during the previous quarter.
Historically low construction levels and fierce retailer competition for the best locations is fuelling this growth, leading to record-breaking rents in many global markets.
Hong Kong (THB124,650 per sqm per month) topped the rankings by a substantial margin, with New York (THB87,843 per sqm per month) in second position
Bangkok (THB3,100 per sqm) recorded a 3.7 percent increase in average rental growth on an annual basis due to increasing tourist arrivals supporting retail sales in Bangkok and resort cities. Due to the strong retail market in Thailand, many global brands are entering the Thai market in the form of owned stores, franchises and distribution deals, according to CBRE.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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