Although, the economic situation has not fully recovered, but it is better than the first half. Bangkok’s retail market is still growing and ignoring the perception of politics turmoil, earlier this year.
According to Collier International Thailand Research, about 196,000 square meters of retail space was added during the first nine months of this year, taking the total to 6,794,600sqm. The main players were Community malls, making up 47 per cent of the 53,200sqm of new retail space supplied in the third quarter. More than 393,390sqm is scheduled to be completed this quarter.
More than 4 million square meters or 59 per cent of existing retail space as of the third quarter covered shopping malls and community malls. New supply scheduled to be completed this quarter amounts to 393,390sqm, with 190,500sqm of shopping malls and 182,900sqm of community malls.
During the political crisis in the first half, many new foreign and Thai companies still opened their shops in Bangkok and some tourist destinations. Demand from all international and Thai shops expected to be strong from this quarter to next year and the average occupancy rate in the retail business will grow 3-5 percentage points next year, especially in the city.
The average rental rates of all locations in Greater Bangkok last quarter showed very little increase from the second quarter. The city area has the highest rental rate, which is probably higher than Bt3,000 per square meter per month at some shopping malls. Many new community malls in the suburbs were completed in the past few years, so rental rates in those areas continue to increase.
The occupancy rate in all areas last quarter remained similar to that in the previous quarter, but the rate in the city area increased more than in other locations because of some brand names and luxury shops.
November 21, 2014