Thai retail property industry must take into account changing preferences

Despite the mushrooming of community malls and other retail outlets over the past few years, consumers still choose convenience over prices owing to traffic congestion and other such problems, Veena Arunyakasem, managing director and founder of One Click, a shopping mall and property development consulting company, said last week.

This presents a vast opportunity for developers of commercial property such as condominiums and office buildings to incorporate retail shops and service facilities into their projects to serve their occupants and tenants.

"They should ride on this new trend that will help them reap more revenue, especially with projects that are located far away from existing shops," she said.

Many office building owners still have not made full use of their available space on the ground level to accommodate retail shops, food courts and service facilities, or have not done so in a professional manner that will help improve the quality of life for their tenants.

Leading hospitals such as Bangkok Hospital are stepping into the commercial property business by leasing out space to Starbucks, Au Bon Pain and other shops. Bumrungrad Hospital is constructing a building that is more or less a shopping mall within its premises.

"Interestingly, it also has a hotel offering packages bundled with healthcare treatments."

Even universities are now running their own malls. Bangkok University has already opened one while Thammasat is planningg one.

"They have 40,000-50,000 students who have purchasing power and are ready to spend all they have," she said.

Flea markets are also booming and the trend will continue as long as new housing estates and communities continue popping up. A flea market operator in Bangkok said he earned Bt1.6 million a month from utilising his 3.5 rai of land. To serve the new generation of consumers, more flea markets should be developed with unique themes, cleanliness and fresh designs.

Retailers expanding to meet demand

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Thai retail property industry must take into account changing preferences