Q1 retail property demand still strong despite political woes

This is according to the latest data on the Bangkok retail property market from the Research Department of Colliers International Thailand.

Only 6,500 square metres of new retail projects were completed and opened in the first three months of this year, while more than 40,000 square metres were postponed to the current quarter, said Surachet Kongcheep, associate director of the department.

He said some retail centres could not be completed as expected in the first quarter, especially in the City area of Bangkok.

Meanwhile, the total retail supply in the Suburban Bangkok area was the largest, with around 3.5 million square metres or approximately 53 per cent of the total supply of Bangkok and surrounding areas.

This was due to the huge number of residential projects, which create the real demand for retail centres such as community malls and large-scale shopping malls in the Suburban Bangkok area.

Some 866,530 square metres of future supply is under construction and expected to be completed this year, with 559,140 square metres at shopping malls and 269,400 square metres at community malls.

Most community malls scheduled to be completed in 2014 are located in the Suburban Bangkok area, although some community malls in Bangkok are not successful and cannot maintain their initial popularity, he said.

The occupancy rates in all categories are above 95 per cent, except for supporting retail, which weighed in at 90 per cent.

Surachet explained that most retail centres in Bangkok had achieved a high take-up rate, especially those in the City area.

During the past one to two years, many international brands have been looking to open shops in Thailand, especially at shopping malls in Bangkok. In addition, many local Thai brands also continue to open shops in all areas of the country.

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Q1 retail property demand still strong despite political woes