Despite relatively high household debt and low consumer confidence, Thailand's retail market is expected to grow, helped by foreigners' spending, says Nexus Real Estate Advisory.
The property consultant forecast at least 400,000 square metres of new supply over the next three years, with projects such as M Sphere, One Bangkok and Siam Premium Outlets Bangkok.
Teerawit Limthongsakul, the company's managing director, said of that total, about 60,000 sq m will be opened in the central retail district (CRD) and 340,000 sq m in other districts.
For the non-CRD, 22,000 sq m are planned to open in 2020, with 12,000 sq m for The Parq mixed-use project on Rama IV Road near Queen Sirikit National Convention Center. Another 10,000 sq m are allocated to Silom Center at the intersection of Rama IV and Silom roads, featuring an office building and retail anchors.
In 2021, the bulk of retail space addition comes from the expansion of Iconsiam phase II and The Mall Ramkhamhaeng, he said. During 2022-23, big retail projects include M Sphere, developed by The Mall Group on a plot near Benjasiri Park; The One Bangkok on Rama IV Road opposite Lumpini park; Bangkok Mall and The Forestias in the Bang Na-Trat area; and Silom Square from Sriboonruang Group in the Sala Daeng area.
In 2019, commercial space supply was increased by more than 280,000 sq m, adding 101 The Third Place, Don Don Donki, The Market Bangkok, Samyan Mitrtown, Central Village, and I'm Chinatown.
"The retail market in Bangkok remains attractive and is likely to keep growing. However, it is necessary for operators to build new experiences that consumers cannot get from online or delivery service," Mr Teerawit said. "Retailers should develop projects to meet customer demand and provide quick service while maintaining their relationship with customers."