Competition is increasing in Bangkok’s retail property sector, with bricks vs clicks as e-commerce grows and bricks vs bricks as developers build new malls, according to CBRE, a leading international property consultant.
All over the world, e-commerce is challenging traditional retail stores and Thailand is no exception. Currently, e-commerce accounts for only a small percentage of total retail sales in Thailand, but CBRE sees rapid growth for it ahead. In the UK, 18 per cent of retail sales are now online rather than from traditional bricks-and-mortar stores.
In Bangkok, the threat to retail landlords is not only caused by the rise of e-commerce, but is also a result of an increase in supply.
Based on the latest survey by CBRE Research, over 600,000 square metres of space are under construction and due for completion by 2023. Most is for large-scale shopping malls, including EmSphere, Bangkok Mall and One Bangkok. Additional new malls are being planned with construction expected to start soon, such as the redevelopment of the Thani Hotel.