More shopping centres in border provinces as AEC nears
Retail property developers are opening more shopping centres in provinces near neighbouring countries, as more shoppers from those nations are expected come into Thailand after the Asean Economic Community (AEC) becomes effective at the end of the year.
"We plan to open a new shopping centre that has total retail space of more than 100,000 square metres in the Northeast of Thailand within the next three to five years with an investment of Bt3 billion," Pimpaka Wanglee, chief executive officer of Rangsit Plaza Co, owner and operator of Future Park Rangsit, told a news conference last week.
Other developers have also expanded their investment in provinces near neighbouring countries since last year.
Central Group has opened six shopping centres and lifestyle centres in such provinces.
The Buri Ram Lifestyle Centre focuses on local and Cambodian shoppers. Central Plaza Chiang Rai caters to local, Laotian and Myanmar shoppers.
Robinson Mukdahan serves local and Laotian shoppers, as does Central Plaza Udon Thani. Central Festival Hat Yai in Songkhla province focuses on local and Malaysian shoppers, while Mae Sot Lifestyle Centre serves local shoppers and those from Myanmar.
Central Group has also expanded its investment in Asean countries since last year, opening Central Shopping Centre in Jakarta and Robinson Shopping Centre in Hanoi.
"We foresee business opportunities in Asean when the AEC is effective," Central Group CEO |Tos Chirathivat said early this year.
MBK also plans to open a new lifestyle mall through a joint |venture with a local property developer in the special economic zone (SEZ) in Tak province |with retail space of about 20,000sqm, the company’s managing director for retail operations, Sakchai Kengkijkosol, said early this year.
"We see huge potential in Tak. Mae Sot enjoys Bt10 billion in trade per year, while Myanmar customers come across the border to buy consumer goods in Thailand," he said.
Good opportunities
MBK is conducting a feasibility study on developing retail projects in other provinces with SEZs including Kanchanaburi, Chiang Rai, Nong Khai, Mukdahan and Prachin Buri.
Sakchai said Indonesia and Malaysia also offered good business opportunities, and visitors from these countries were ranked first and second respectively among foreigners visiting the MBK shopping centre in Bangkok.
TMB Analytics said Thailand’s border trade was worth Bt229 billion in 2014, growing by an average of 9.5 per cent a year since 2012.
This is an impetus for retail developers to expand in border provinces, especially those near Cambodia, Laos and Myanmar. People from those countries |have strong demand for Thai products.
According to a survey by the Real Estate Information Centre (REIC) of Government Housing Bank, retail business is booming in 10 SEZs in Tak (Mae Sot district), Songkhla (Sadao district), Mukdahan, Sa Kaew (Aranyaprathet district), Trat, Nakhon Phanom, Kanchanaburi, Chiang Rai, Nong Khai and Narathiwat.
The survey found that Tak province was popular with both local and foreign investors in res
idential and commercial buildings, especially for retail business.
"Robinson plans to open a |branch in Mae Sot district, Tak, in 2017. MBK and MM Mega Market of |TCC Land, owned by beverage tycoon Charoen Sirivadanabhakdi, also plan to invest more than |Bt10 billion to develop shopping centres and community malls in |this province," REIC director-general Samma Kitsin said.
Nong Khai is another province that has seen more investment in retail business to cash in on demand from both local and Laotian shoppers.
REIC reported that Nong Khai had two Tesco Lotus branches and one Makro, while TCC Land Group planned to open an MM Mega Market shopping centre and Vviang Lifestyle Mall in the province next year. Aranyaprathet district of Sa Kaew province is also a popular location for retail business.
TCC Land Group is constructing an MM Mega Market in this district that will be competed next year.
Amid strong demand to develop both residential and commercial buildings in the 10 SEZs, the new land appraisals, which will be effective for 2016-2019, show rising prices.
For example, land prices in Tak province will increase by 42.65 per cent from this year, Mukdahan 38.12 per cent, Nong Khai 37.71 per cent, Songkhla 35 per cent, Kanchanaburi 29.64 per cent, Chiang Rai 27.33 per cent, Sa Kaew 24.10 per cent, and Narathiwat 1.82 per cent, the REIC said.
