At least 28 new community malls will be opened in Bangkok and suburban areas in 2015-16 in response to growing urbanisation and changing lifestyles.
Community malls accounted for the biggest growth in the retail sector last year. Over a half or 147,000 square metres, out of the total new retail space of 282,600 sq m, came from community malls.
Surachet Kongcheep, associate director of Colliers International (Thailand) Co, said 25 new community malls with over 320,000 sq m were slated to open this year. Among them, 14 projects are in western Bangkok including Kalapapruek, Ratchapruek and Phetkasem Soi 48.
The Imagine Village, a community mall at Bangkok University's Rangsit campus in Pathum Thani, attracts visitors besides university students. Besides creativity and design, good location is key for community malls. PATTANAPONG HIRUNARD
Community malls in the western area due to be opened in the first quarter of this year include Metro West Town, Dragon Mall and Pop Market.
Six new community malls including the Jas Lat Plaklao and the Auto Mall will be opened in the north of the capital and the remaining seven projects will be in other locations.
Community malls have taken off in Bangkok due to the changing lifestyles of people who want shopping convenience, while some are popular in major provinces and tourist destinations.
Among the community malls planned to open in major provinces this year are Lime Light community mall in Phuket, the 600-million-baht Posri Village in Udon Thani and Johor Market Place, which will kick off later this year in Nakhon Ratchasima.
Community malls started gaining in popularity in 2005 after the launch of J-Avenue lifestyle mall. It came with the right concept, the right place and at the right time. It was built when Japanese expats flocked to the area and Japanese culture and cuisine started to become more popular among Thais.
Veena Arunyakasem, managing director of retail development consultant One Click Marketing Co, said only 20-30% of community malls are successful because most of them are developed by property developers with little knowledge of the retail industry and retail management skills.
Currently, the retail sector is facing a shortage of management personnel as few operators have seriously produced retail professionals to supply the industry.
Colliers International said Bangkok had 6.88 million sq m of total retail space at the end of last year, of which shopping malls accounted for 4.01 million sq m, community malls 962,409 sq m, hypermarkets 816,953 sq m, specialty stores 414,247 sq m, department stores 289,842 sq m, supporting retail 250,862 sq m and entertainment complexes 132,948 sq m.
The community mall sector has grown for seven consecutive years and last year's growth was 18%.
Chatrchai Tuongratanaphan, director of the Thai Retailers Association, said community malls did not face an oversupply. Only a few malls have closed down while there will be new community malls joining the market in the next two years.