Retail property market sound

Bangkok‘s retail property sector had a generally positive performance in the third quarter, supported by the recovering economy and property markets, according to the global real estate firm DTZ.

The improvement in sentiment helped fuel increasing interest from both domestic and international retailers.

There was no new supply in both downtown and midtown areas in the quarter. Total stock of retail space in the downtown area was 965,000 square metres and in midtown 313,000 sq m.

In the downtown zone, occupancy slipped from 94.2% in the second quarter to 93.5% in the third, reflecting closures after the May riots, and movement to more economically favourable locations and new retail hotspots. Downtown rental rates remained unchanged at 2,290 baht per sq m per month.

Midtown occupancy rose to 94.8% from 94.3% as tenants focused on neighbourhood malls. Rents remained unchanged at 1,560 baht per sq m per month, but were up 2% year-on-year.

“Developers are now actively tapping new neighbourhoods that lack sizeable retail facilities by introducing new modern boutique lifestyle developments,” said Punnee Sritunyalucksana, director of DTZ Thailand (Retail).

Source: Bangkok Post