Thailand’s retail property and real estate market remained weak during the second quarter of this year as the kingdom struggled with the economic slowdown and weak consumer spending and confidence.
In CBRE’s latest Bangkok Retail MarketView Q2 2015 research report, published late last week, the real estate firm noted how leasing demand was led by international brands from Europe and the United States, particularly in the luxury sector in downtown Bangkok.
It added that domestic retailers have slowed their pace of expansion.
Construction continued on many new retail centres, and this will add approximately 1.5 million sqm of new supply to Bangkok’s modern retail property stock over the next three years. That equates to a 15 percent increase.
The large supply in the development pipeline will continue to increase competition in Bangkok.
Many landlords are renovating their existing malls in order to attract new brands, and CBRE said this is key to increasing traffic.
To read the full CBRE Bangkok Retail MarketView Q2 2015 report click here.
