According to the latest retail property report released by Colliers International Thailand, demand for Bangkok’s retail real estate remains strong, especially in the suburbs. Approximately 6,500 square metres of retail space were completed in the first quarter of 2014, raising the total retail supply in the city and its surrounding areas to almost 6.6 million square metres. The overall occupancy rates for such properties in the first quarter were above 95 percent, with high take-up rates.
While some new retail projects in central Bangkok were delayed from the first quarter to this quarter, the city’s retail supply growth was fuelled by consumer demand from a large number of new residential projects that have been completed in the suburbs. This area currently house 3.5 million square metres of space, or 53 percent of the total retail supply. Some 866,530 square metres of future supply are under construction and expected to be completed this year, with 559,140 square metres in shopping malls and 269,400 square metres in community malls.
In general, new retail centres are letting out space prior to completion, and most are already fully occupied. The strong demand also reflects the expansion plans of international and local brands that are eager to build market share in Thailand. Local purchasing power remains strong; despite the political situation and economic slowdown, the retail sales index is still higher than that of the past two years.
