Bangkok - Prime Retail Research

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Prime Retail Bangkok-Q2/2022

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Retailers are refocusing on well-established retail districts as the second quarter saw an uptick in activity from major international and luxury brands. Despite the absence of Mainland Chinese tourists, the luxury retail market is proving surprisingly resilient.

ECONOMIC REVIEW

  • Bangkok market-wide retail stock reached eight million sq m in 2022, of which 2.3 million sq m is prime space. Projects currently under construction comprising nearly 570,000 sq m are expected to enter the market by 2024, accounting for 25% of existing total prime stock.
  • Bangkok market-wide retail stock reached eight million sq m in 2022, of which 2.3 million sq m is prime space. Projects currently under construction comprising nearly 570,000 sq m are expected to enter the market by 2024, accounting for 25% of existing total prime stock.
  • Average prime retail rents in CRD increased to THB2,400 per sq m per month. The overall average rental rate fell to THB2,070 per sq m per month in Q2/2022, 8% lower than the pre-pandemic level recorded in 2019.
  • Prime vacant space fell to 3.6% in Q2/2022 from 4.2% in Q1/2022.
  • At opposite ends of the market, luxury retail and convenience stores are both proving surprisingly resilient, a situation which is expected to continue through to the end of 2022.

“Bangkok retailers have adapted in order to be ready for the post travel restrictions era, targeting visitors from other countries besides high spending Mainland Chinese who are largely absent.”

MARKET COMMENTARY

Bangkok’s retail industry is proving resilient, with the level of general market activity indicating improved foot traffic together with higher  spending in the first half of 2022, notably in the luxury segment. The Consumer Confidence Index (CCI) presented its first rise after a period of six months of consecutive declines from the highest recorded level at 46.2 in December 2021 to 40.2 in May 2022, before registering 41.6 in June. The Business Sentiment Index (BSI) also increased by 2.4% to 50.5 points in June.

Major retail market events in the first half of 2022 included the renovation of Amarin Plaza, Erawan, and Central Ramintra, in addition to the  demolition of The Peninsula Plaza, and the official commencement of operations for the second phase of Central Village in April. Projects currently underconstruction of nearly 570,000 sq m are expected to enter the market by 2024, accounting for 25% of current prime stock.

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