THE supply of retail space in the center of Bangkok continued to increase in the first half of this year on the back of steady economic expansion with the World Bank recently projecting that Thailand will post a 2.5% growth this year, an in-depth research by Nexus Property Consultants says.
This metropolis’ Central Retail District (CRD) added 649,545 square meters (sqms) of retail space in first six months of this year or an increase of 6.6% over the second half of 2015.
“This has been increasing continuously over the past three years due to strong demand in the city center, especially prime locations,” this research said.
The rental rate was 3,800 baht a sqm a month, a slight increase of 1.05% from the same period last year. Occupancy in Bangkok’s CRD was as high as 97.22% during this period.
Nexus’ research said further that overall across all of Bangkok, the retail space totaled 5.61 million sqms in the first half of 2016, or an increase of 2.39% from the same period last year.
The most competitive industry was food and beverage with this being due to the lifestyle of Bangkok people who like to hang out in trendy coffee shops and restaurants.
E-commerce has turned out to be a strong option for shopping for apparel and accessories with this being due to rapid spread of high-technology and social networks which has greatly benefited e-commerce operators, Kasikorn research center said.
“According to Kasikorn research center, e-commerce in Thailand is expected to grow by 15-20% in 2016 from the level reached in 2015,”
World Bank said recently that while the global economy has been weakening and exports slowing down, Thailand’s strong fundamentals and ample fiscal and monetary buffers will help the country weather the shocks.
“Fiscal stimulus and tourism will remain key drivers of economic growth in Thailand, but the economy still faces headwinds on the path to a broad-based and sustained recovery.
“The slowdown has exposed structural challenges in implementing public investment, maintaining or raising export competitiveness, and addressing skills mismatches,” the report said.
“The aging of the working-age population will begin to affect the Thai economy within the next five years,” it added.
TOP: A shopkeeper awaits customers in the heart of Bangkok’s Chinatown. Photo: Pietro Motta
By Nanthida Kumari