Q1 2013 | RETAIL
THAILAND
BANGKOK RETAIL MARKET REPORT
Bangkok Retial Market EXECUTIVE SUMMARY Bangkok’s appetite for shopping and rapidly growing suburbs is driving expansion in the retail property sector, with new malls due to open throughout 2013.
MARKET INDICATORS Q4 2012- Q1 2013 NEW SUPPLY RENTALS OCCUPANCY
Local and international retail brands aggressively expanded their numbers of shops and presence in malls last year in Bangkok and other parts of Thailand, and that growth is set to continue in 2013. Convenience stores became the most competitive area of retail last year, with a number of big companies opening large numbers of new stores, while community malls are also still popular for developers, with the large number of residential developments springing up along mass transit routes in the capital driving demand for easily accessible shopping. The first quarter of this year saw slower growth than in the fourth quarter of 2012, with 27,500 sq m of retail space completed, all of it in community malls. However, more than 284,000 sq m is due to be finished throughout the course of this year, the majority of it in community malls in suburban Bangkok. Large numbers of malls, community malls and specialty stores are also due to open next year and the year after. Rental prices and take-up rose have risen slightly from last year, and some city centre malls have increased their rents by as much as 5-10%, but these isolated price rises have not affected the market as a whole. The Retail Index stood at its highest level for six years in Q1 2013, and while the Consumer Confidence Index dropped by 8% from the last quarter of 2012, it is still higher than the average for the past few years. Online shopping continues to grow in importance for both consumers and retailers, and all of the big-name companies are attempting to expand their presence online with promotions and new campaigns.
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