Rocketing retail sector unlikely to slow down
In Bangkok and upcountry the market is being fed by both local and foreign sources and fundamentals look sound for continued explosive growth
One of the most promising sectors in Thailand's property market is undeniably retail. At present there are a total of 6.21 million square metres of retail space across 323 developments in Bangkok. With an occupancy rate of up to 96.5%, the retail market offers good growth prospects over the next five years. According to the Thai Shopping Centres Association, up to 120 billion baht worth of additional investment will be pumped into the retail sector.
The Bangkok retail market has been stable with an average occupancy rate above 90% and retail supply has grown steadily at 5% per year over the last 10 years. In the next five years, retail space is expected to grow by a further 15% to 20%. This year alone, 23 new retail developments are expected to be completed in Bangkok with a total of 441,000 sq m.
There have been many key drivers in this rapid expansion of Thailand's retail market, both from the demand and supply side.
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