Growing confidence is expected to see a growth in Bangkok’s retail sector, according to Colliers International in its Bangkok Retail Market Q2 2014 Research and Forecast report.
The total retail space in Bangkok and surrounding area, according to the real estate firm, is approximately 6,743,200 sqm. Most future supply expected to be completed from 2H 2014 to 2015 is located in the Bangkok Suburban area.
Community malls still continue to grow; many projects are under construction and expected to be opened in 2014, although some are not successful after opening.
Occupancy and rental rates for retail businesses have shown little change since the start of this year, and there is a steady rise in the amount of retail space coming onto the market.
Some large-scale shopping malls are under construction and expected to be completed in 2014 – 2016, especially in the Suburban Bangkok area. Most fast food restaurants and coffee shops are opening drive-thru restaurants in Bangkok, especially in the area along the main road to the Bangkok suburbs and some main roads outside of Bangkok.
Shopping malls represent 59 percentof the market with nearly 3.8 million sqm of space; approximately 27 percent of shopping mall space is in the city area, and approximately 21 percent is in the outer city area.
Community malls represent the second largest share of the retail market with more than 882,770 sqm, and this will continue to increase in the future according to Colliers. Superstore malls are third with around 12 percent of the total retail space in Bangkok and the surrounding area. Supply
In summary and looking ahead, Colliers Thailand predicts The National Council for Peace and Order (NCPO) has set up many policies with the aim of boosting national confidence and spending. The Thai people’s confidence will probably grow steadily and boost the country’s economy and retail industry in the second half of 2014.
Since 2012, many international and local brands have been looking to expand their spaces and open new shops in retail centres in Bangkok and the surrounding areas and are continuing to grow in 2013 – 2015 in all locations.
In 2014, community malls will continue to grow, especially in the Bangkok suburbs. This is due to many residential projects expanding to Suburban Bangkok; community malls are the most suitable configuration to serve communities in Bangkok and the surrounding area.
Some fast food restaurants and coffee shops are trying to increase the number of their stores with different formats and more interesting as well as suites to modern lifestyle. Drive-thru stores are the most popular with people who do not want to spend their time in the store or restaurant. Many brands are also studying the situation and looking for an opportunity to open their first drive-thru stores in 2014 – 2015.
Some large-scale shopping malls are under construction and expected to be completed in 2014 – 2016, especially in the Suburban Bangkok area. All projects are located in residential areas and adjacent to the outer ring road, because of the convenience of accessibility from other parts of Bangkok.
Most of the older malls will renovate their centres and relocate or remix their tenants and add new brands or shops that are suited to the modern lifestyle.
The main retail developers in Thailand are now focusing more on other cities across the country, especially in some border provinces and main cities in each part of Thailand, in anticipation of the ASEAN Economic Community in 2015. Many superstore malls and specialty stores are opening in provinces bordering other countries, while some retail developers are announcing the development or expansion of shopping malls in some main cities.
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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