Bangkok's retail market will grow more in the second half of the year thanks to the National Council for Peace and Order's policies to boost the economy and restore confidence in the country, according to the Bangkok Retail Market Report.
The report was compiled in the second quarter by the research department of Colliers International Thailand.
According to the research, the retail market in the second quarter grew after the market was affected by the political unrest in the fourth quarter last year and the first quarter this year.
Many community mall projects were completed in the second quarter, with total floor space of more than 60,000sq m, or around 44.2 per cent of all retail space that was completed in the second quarter.
More than 136,000sq m of retail space was supplied in the second quarter. More than 731,500sq m was scheduled to be completed in the quarter.
Surachet Kongcheep, associate director of Colliers International Thailand’s research department, said shopping malls represented 59 per cent of the market, with nearly 3.8 million square metres of space.
He said 27 per cent of the total shopping mall space was the city and 21 per cent was in outer city areas.
Community malls represented the second-largest share of the retail market with almost 883,000sq m and this would continue to increase in the future.
Surachet said superstore malls were third with 12 per cent of the total retail space in Bangkok and surrounding areas. The total retail space in Bangkok and surrounding areas was almost 6.8 million square metres.
The future supply scheduled for completed in the second half of 2014 amounted to nearly 636,500sq m, with just over 359,000sq m shopping malls and more than 247,000sq m community malls.
“More than 187,800 sq m of community malls are scheduled to be completed in the last six months of 2014 in the Bangkok suburban area,” Surachet said.
He said most shopping malls expected to be completed in 2014 were located in the outer city and city, while 72 per cent of community malls scheduled for completion this year were in the suburban Bangkok area.
Community malls were geared to be part of a residential community, so most were located in residential areas in Bangkok suburbs.
Most of the supply slated to open in the second half of the year was located in the outer city, with almost 272,000sq meters and almost 1,056,000sq m scheduled for completion in 2015 and 2016.
Surachet said some large-scale shopping malls expected to be completed within the next two years were located in suburban Bangkok and all were larger than 200,000sq m.
He said occupancy rates in all areas in the second quarter remained similar to the previous quarter.
Since the second quarter 2013, many small tenants had been affected by the economic slowdown, but most were confident in the market so the average occupancy rate had continued to grow.
The average occupancy rate in the city continued to grow over the past two years, despite the opening of new shopping and community malls.
Surachet said the average rental rate in every location in the second quarter was similar to the first quarter. The city had the highest rate because most retail developments are located along mass transit lines.