Trend and Movement of Retail Market in Bangkok

Real Estate Press Releases Wednesday August 8, 2018 13:37
Bangkok--8 Aug--Agate Communication

Thailand's economy is projected to pick up further over the forecast period. Retail Market is one of the most sophisticated real estate market. In the past years, retail market in Thailand has expanded increasingly, rapidly and aggressively while many shopping malls in many countries have been affected by online shopping and dramatic changes in consumer behavior but Thailand seems not to.

The retail market in Thailand continues to expand and of course, Bangkok. There are new retail developments ranging from the small to the mega end of the spectrum each year.

After a long whiles, since Siam Paragon opened in 2006, followed by big renovation in the most of the shopping malls, in 2015, 2 luxury shopping malls have been launched on Ploenchit Road and Sukhumvit Road. The retail market in Bangkok has been highly competitive, especially in prime areas, the vacancy rate is lower than 5% and rental rate is increasing significantly while tenants have been lining up for available space. Food and Beverage are the most increasing in demand thanks to social media, such as Facebook and Instagram, as many international and local brands enter the market by its popularity. Besides, tourist arrivals have also boosted the retail sector, with retail sales growth of 11.66% in last year according to Ministry of Tourism and Sports.

The newest supply entering Bangkok Center Retail District (CRD) was Gaysorn Tower. Net lettable area is 10,000 square meter with the highest rental rate at THB3,500 psm/mo at the opened time, made the total supply in Bangkok CRD to 660,000 sqm. The average rental rate was THB3,900 sqm/mo same as previous year. The occupancy rate in Bangkok CRD was 96.4%.

Nevertheless, limited new supply will be added-in as a result of the dramatically increasing of land price that drive developer consider more on lease land plots. Future supply is expected to be found more in Bangkok Fringe and Urban area.

There are many kinds of business categories such as food and beverages, medical center, surgery clinic, and health & wellness. Surprisingly, consumer behavior has greatly changes. Many retail operators have though to open their business 24 hrs and some operators already does.

Mr.Teerawit Limthongsakul, Managing Director of Nexus Real Estate Advisory stated that "There are a lot of enquiries about 24 hours business such as coffee shop, restaurant, co-working space, and lifestyle entertainment. I found it is interesting opportunity for any business to operate 24/7. Retail market wouldn't be the same, it will be more accessible and lively."

Lifestyle platform has changed, technology becomes norm, and healthy trends have become significant trendy in this era especially it is appearing in Thailand in past few years. People care more about health and wellness in the meantime they also need convenience life.

We can now notice that fitness is almost everywhere, especially in the residential project, shopping mall and community mall. Therefore, they are spread into the office building and some standalone building which seem like gym is everywhere. Fitness business is doing a very good job in the past decade, many well-known brand is doing stabilized and continue to grow increasingly. However, most of international brands are targeting high-end segment. A collapse of big brand fitness centre during the past few years made a huge hole in the middle segment market.

To combined with convenience and healthy life, 24/7 fitness has been established.

At least 3 international fitness brands with the 24/7 concept is arrived to Thailand at the same time. They're hunting for spaces on the ground floor which convenience for their customer but is not a tropical type of fitness location. Some of the landlord wouldn't accepted. "It would take some time to change landlord perspective that fitness can be anchor and magnet store like Starbucks or McDonalds" Mr.Teerawit said.

Latest Press Release

LH Mall Hotel Launches the New Mixed-Use Flagship Project in North Pattayas Prime Location Marking Its First Hotel Shopping Complex outside Bangkok

In the fourth quarter of this year, LH Mall & Hotel Group is ready to anchor on the heart of North Pattaya with the premier "mixed-use" flagship project with 6,000 million baht in values. This is an ever-evolving mix of hotel-shopping complex outside...

Siam Gypsum (also known as USG Boral Thailand) wins Green Industry Award for being an Environmentally-Friendly Business

Siam Gypsum (also known as USG Boral Thailand), a leading innovator of plasterboards, manufacturing and supplying building solutions, recently took home the Green Industry Award at the Green Industry Forum Seminar. The award was presented by Mr. Suthon...

Areeya Property Launches 8 New Projects for the 2nd Half of the Year and Reveals 5 Consumer Trends for Real Estate Business

Areeya Property, Thailand's leading real estate company, launches 8 new projects for the 2nd half of the year, with over 7,275 million baht worth, and a new campaign "Areeya: Happiness is in the Air" to correspond with 5 new consumer trends in 2018 that...


On Saturday 15 September, the leadership team from the landmark luxury mixed-use Chao Phraya Estate development joined forces with officials from the Canadian Embassy of Thailand along with teachers from nearby Wat Suthiwararam School to help clean up...

SCG Hosts SCG Open House, Reflecting Ambitions of Young Generation and Company Leaders to Create Innovations for Digital Era and Pass on Their Passion to Participants for the Better

SCG hosted its first "SCG Open House" at SCG Head Office in Bang Sue under the theme "Discover Our Passion, Discover Your Passion." The Open House allowed new generations to discover how the organization drives growth in 3 core businesses with...

Related Topics