Bangkok is the 17th hottest city for new retailer expansion, with 19 new entrants according to the latest report by real estate firm CBRE.
The world’s hottest retail expansion destination? That tag belongs to Tokyo with 63 new retail brands. Space in core areas of Tokyo remains highly sought after despite mixed signals in the economy and an increase in sales tax of 8 percent introduced in April 2014.
Singapore followed Tokyo with 58 new retail brands while Taipei came fourth, climbing seven places from last year’s new entrants’ rankings with 49 new brands this year compared to 29 in 2013.
Other cities in the region making the top 15 list include Hong Kong with 45 new entrants, Beijing with 34 and Manila with 24.
London has retained its position as the world’s most international shopping destination with 57.9 percent of international retailers present there, which was followed by Dubai with 55.7 percent of international retailers present and Shanghai with 53.4 percent.
James Pitchon, Head of CBRE Research and Consulting, CBRE Thailand, said: “During Q1 2015, the total Bangkok retail supply was 6.8 million sqm, an increase of 7.8 percent year-on-year. The largest new retail development in the quarter was the 50,000 sqm EmQuartier luxury shopping mall on Sukhumvit Road.
“The volume of occupied retail space increased by 4.8 percent year-on-year, and CBRE anticipates the number of new entrants in 2015 will be more than in 2014. The coffee and restaurants sector is expected to create the largest proportion of the new entries in Bangkok while mid-range fashion brands will continue to expand.”
Jonathan Hsu, Head of Occupier Markets Research, CBRE Asia Pacific, said: “The continued desire for expansion into new cities remains high for international brands. We are seeing a great deal of expansion into Asia and in particular into Tokyo, Singapore and Taipei.”
Globally, mid-range fashion retailers remained the most active sector, accounting for 21 percent of international expansion, followed by luxury and business retailers with 20 percent.
Expansion into the Asia-Pacific region was dominated by luxury and business retailers, accounting for 24 percent of activity, followed by coffee and restaurant retailers with 22 percent.
Retailers from Asia-Pacific still see substantial growth within its own region, with a majority 79 percent of retailers continuing to target their own region for expansion.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
