Though recovery incomplete, Bangkok retail market growing, research centre Collier finds
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GREATER BANGKOK'S retail market is still growing even though the economy has not yet recovered 100 per cent, according to Collier International Thailand Research.
About 196,000 square metres of retail space was added during the first nine months of this year, taking the total to 6,794,600sqm.
Surachet Kongcheep, associate director of research, said community malls were still the main players, 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 metres or 59 per cent of existing retail space as of the third quarter comprised shopping malls and community malls, representing the second-largest market share with a total area of 905,980sqm or 13 per cent.
Superstore malls rank third at 12 per cent or 816,950sqm. Community malls replaced superstore malls in second place after many community malls were added to the market in the past few years compared with very few superstore 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.
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.
During the political crisis in the first half, many new foreign and Thai players still opened their shops in Bangkok and some tourist destinations.
Demand from all international and Thai shops will remain strong from this quarter to next year, so the average occupancy rate in the retail business will grow 3–5 percentage points next year, especially in the city.
Although the economic situation last quarter still had not fully recovered, it was better than the first half.
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 metre per month at some shopping malls.
Most retail developments are in the central business district and along mass-transit lines, which are more convenient for shoppers. Many new community malls in the suburbs were completed in the past few years, so rental rates in those areas continue to increase.
The main retail developers are now focusing more on other cities across the country, especially in some border provinces and main cities in each region.
Many superstore malls and speciality stores are popping up in border provinces, while some shopping malls are being developed or expanded in some main cities, Surachet said.
