Post by account_disabled on Feb 28, 2024 0:33:21 GMT -5
Overview of the retail space market in Bangkok in 2020 and future trends Mr. Carlos Martinez, Director of Research and Consulting, Knight Frank Thailand Co., Ltd. said, “Thai consumption has almost doubled over the past decade. increase in local income Spending by foreign tourists has increased. including better infrastructure These factors drive the expansion of retail space in Bangkok. The total supply of retail space in Bangkok in 2020 was approximately 9 million sq m, with shopping centers accounting for more than 60% of the total retail space. The supply of retail space in Bangkok has increased at an average annual rate of 6.1% over the past 10 years.” “The retail market continues to expand as expected with new supply in 2020, with many developers announcing plans to continue increasing the supply of retail space year on year.
It is expected that there will be a total of approximately 1.4 million Portugal Phone Number additional square meters of new supply entering the market no later than 2023, representing an increase of up to 16% of the total retail space supply. The new supply that will be created will be of the type shopping centers and community malls. Especially in suburban areas This is driven by the development of suburban areas along with the expansion of mass transit routes. And this is partly due to the lack of suitable land and high competition in the city center.” “If looking at the total retail building area per capita to measure the density of retail space. In the broad overview Such information indicates that Bangkok has a total retail building area per capita of 0.6 square meters, which is close to the highest oversupply compared to other provinces in the region, especially When considering the level of retail space, the volume of tourists and the level of consumer spending must also be taken into account. from the estimate Hong Kong and Singapore will be ranked highest. This is more predictable as both cities are top shopping destinations in the region. and has a relatively high income per capita The total retail building space per capita is insufficient to determine the amount supported.
But it is useful information to monitor for warning signs of overdevelopment.” Graph 1 Retail building area per capita Retial GFA per Capita (Shopping Centers and Department Stores) Graph-1 Source: Knight Frank Thailand Advertisement “The average occupancy rate is quite good. It has ranged between 92% – 94% over the past five years. This signals high stability in the market. Average rental prices have also held steady over the past four years. after experiencing rising rents in previous years We don't expect to see rental prices increase in the short term. In fact, many major retailers reported a 20%-30% drop in rental income as a result of rent waivers to help tenants during the 2020 lockdown. This allows operators to maintain a high occupancy rate. And it is important for every retail center to preserve it.” Graph 2: Amount of retail space and occupancy rate in Bangkok Graph-2 Source: Knight Frank Thailand “Consumer confidence fell, signaling more frugal spending following expectations of slower economic growth. However, some retail sales recovered quickly after the end of the lockdown.
It is expected that there will be a total of approximately 1.4 million Portugal Phone Number additional square meters of new supply entering the market no later than 2023, representing an increase of up to 16% of the total retail space supply. The new supply that will be created will be of the type shopping centers and community malls. Especially in suburban areas This is driven by the development of suburban areas along with the expansion of mass transit routes. And this is partly due to the lack of suitable land and high competition in the city center.” “If looking at the total retail building area per capita to measure the density of retail space. In the broad overview Such information indicates that Bangkok has a total retail building area per capita of 0.6 square meters, which is close to the highest oversupply compared to other provinces in the region, especially When considering the level of retail space, the volume of tourists and the level of consumer spending must also be taken into account. from the estimate Hong Kong and Singapore will be ranked highest. This is more predictable as both cities are top shopping destinations in the region. and has a relatively high income per capita The total retail building space per capita is insufficient to determine the amount supported.
But it is useful information to monitor for warning signs of overdevelopment.” Graph 1 Retail building area per capita Retial GFA per Capita (Shopping Centers and Department Stores) Graph-1 Source: Knight Frank Thailand Advertisement “The average occupancy rate is quite good. It has ranged between 92% – 94% over the past five years. This signals high stability in the market. Average rental prices have also held steady over the past four years. after experiencing rising rents in previous years We don't expect to see rental prices increase in the short term. In fact, many major retailers reported a 20%-30% drop in rental income as a result of rent waivers to help tenants during the 2020 lockdown. This allows operators to maintain a high occupancy rate. And it is important for every retail center to preserve it.” Graph 2: Amount of retail space and occupancy rate in Bangkok Graph-2 Source: Knight Frank Thailand “Consumer confidence fell, signaling more frugal spending following expectations of slower economic growth. However, some retail sales recovered quickly after the end of the lockdown.