The supply of retail space in Bangkok has risen by 12.7% to 7.437 million square metres this year, the highest growth in Asean, even as consumer purchasing power remains weak.
Retail space and occupancy rates at new retail developments in Bangkok increased the most when compared with other Asean capitals, said Sunchai Kooakachai, deputy managing director of property research firm Colliers International Thailand.
More than 165,690 sq m of retail space was added to the market in the third quarter of 2015. The fourth quarter will see an estimated 186,500 sq m added by 10 new projects such as TCC Group's The Street community mall on Ratchadaphisek Road, The Zpell at Future Park Rangsit (officially opening tomorrow with 100,000 sq m) and Central Festival East Ville on Pradit Manutham Road (also opening tomorrow with 150,000 sq m).
Most of the retail projects opening in the fourth quarter are in Bangkok and its suburban areas. Shopping centres and community malls are boosting the supply of retail space.
Community mall space is nearing 1 million sq m, up from 300,000 sq m in 2007.
Retail supply will continue to increase next year, Colliers said.
Some 375,000 sq m will be added to the market in 2016, bringing overall retail space to 7.741 million sq m. The additional space will come from 12 new retail developments across Bangkok and the vicinity.
The 12 new projects will include MBK Pathum Thani shopping mall (developed by the Bulakul family), Suanlum Night Bazaar on Ratchadaphisek Road, Metro East Town, Show DC on Rama IX Road, Smile Square, Seacon City, Canapaya, Happy Avenue Don Muang and Gaysorn 2 in the Ratchaprasong area.
At least 574,000 sq m will be added in 2017, bringing total retail space in Bangkok and suburban areas to 8.315 sq m.
Big retail players still dominate the business. Shopping malls have the biggest share of retail space with 4.23 million sq m, followed by community malls and hypermarkets with 820,000 sq m.
Various large-scale shopping malls are set for completion in 2018 and 2019.