Bangkok Retail Market Report Q1 2011 | Colliers International Thailand

8/6/2019 Bangkok Retail Market Report Q1 2011 | Colliers International Thailand

1/12

Q4 2010/Q1 2011

new Supply

RenTAlS

OccupAncy

Bangkok RETaIL MaRkETThAilAnd

.ors.o.t

Bangkok Retail Market

execuTive SummARy

Supply rwth slwi q/q r Q1 2011 with just rud 14,180 sq m bei cmpleted, ll bei

cmmuity mlls.

Retls rtes esclted q/q by rud 4% d te up icresed by pprximtely 1% r the sme

perid. Csumer cdece d spedi ver the pst yer re psitively ecti the retil

sectr s whle.

The tred is t ly the develpmet ew retil cetres but the revti lder buildis

with utdted retil desis d mix. This iht t the tp c ly be beet t custmers d

the sectr s whle.

The re ecmpssi the rther prt the eihburi prvice Smut Pr l

with B n, which brders the prvice i Bs suburbs, is icresily bei see s strteic hub r the whlesle d listics mret due t its lcti clse t the city, airprt

d Ester Sebrd.

Q1 2011 | Retail

mARkeT indicATORS


2/12COLLIERS INTERNATIONAL | P. 2

Bangkok Retail MaRket RePoRt | Q1 2011

apprximtely 14,180 sq m ws cmpleted i Q1 2011, with erly 10,400

sq m lcted i Suburb B d the rest i the outer City re.

a secti Cetrl Wrld, icludi Ze deprtmet stre, is still

uderi revti llwi the dme cused by the re i My

2010, hwever CPn uced the clsure Cetrl Ldpr r

revti r six mths rm 14 Februry t the ed July 2011. The

clsi this ceter hs led t ther retil ceters ttempti t ttrct

custmers rm Cetrl Ldpr by luchi my cmpis d

prmtis.

Tw ew cmmuity mlls peed i Q1 d these remi very ppulr

d shible sectr retil busiess, especilly i the Suburb

B re. oe is the amrii Butique Liestyle Hll with

pprximtely 5,000 sq m which hd its fcil rd pei 21

Mrch 2011 d is lcted i Suburb B Est. The ther is

The Circle Rtchpru i Suburb B West re. This cetre

is the Rtchpru rd i mst the ew hih ed vill develpmets

tht exist r re bei cstructed. The cetre is e level d

ctis eclectic rchitecturl desis.

o 21 Mrch, Bi C strted the prcess t rebrd the Crreur

hypermrets which the cmpy purchsed i 2010. Bi C hve lredy

uced tht 34 brches ut the ttl 42 will uder

rebrdi mever but the remider will be sld s they re lredy

i clse prximity t existi Bi C supercetres.

Surce: Clliers Itertil Thild Reserch

AddiTiOnAl Supply by QuARTeR


3/12

bReAkdOwn Of ReTAil SpAce in bAngkOk by lOcATiOn, Q1 2011

COLLIERS INTERNATIONAL | P. 3


Retil develpers re tryi t develp prjects clser t their ctchmet

res i the suburb res, where mre peple live. Hwever ly hl

ttl retil spce i B is lcted i the suburb B re;

with every deprtmet stre i B lcted i the urb re due t

the ttrcti, s i mst cities, shppi i the cetre. Bere the

dvet crs r the msses the cetre ws the re tht peple ced

t r the retil experiece. The vst mjrity luxury shps re lcted

i the City are.


cumulATive fuTuRe Supply in bAngkOk by yeAR And cATegORy, AS Of Q1 2011


The uture supply scheduled t be cmpleted i 2011 muts t mreth 300,000 sq m, with pprximtely 217,000 sq m s shppi mlls.

The mjrity will cme rm Cetrl Rm 9 which is scheduled t pe

i Q4 2011 with rud 150,000 sq m retil spce. apprximtely63,000 sq m is expected t be cmpleted i 2012.

fuTuRe Supply


4/12

a re i the prvice Smut Pr but djcet t the B

Metrplit re will becme shppi hub. I the ester prt

B l B Trd Rd, Me B by Sim Future

Develpmet Plc. d IkEa with ttl re pprximtely 400,000

sq m is scheduled t be peed i Q3 2012 Hwever IkEa with rud

40,000 sq m stre spce is slted t pe by the ed 2011. Curretlyretil sttistics r this re re t ctied i this reprt.

other siict retil ceters c be ud i the sme viciity, such s

SB Desi Squre, Idex Livi Mll, Tesc Ltus, Bi C i Cetrl

B s well s Sec Squre d Prdise Pr Sriri

Rd. I dditi develper rm Chi pls t ivest up t 45 billi

bht i mjr whlesle trde cetre which will be med Thi

Chi Itertil Prducts City B Trd Rd er

Suvrbhumi Itertil airprt with ttl spce tw milli sq

m with the rst phse 700,000 sq m scheduled t be peed i

octber 2012. Hwever this prject hs cme uder sme ctrversyrm Thi trders wh eel the prject will crwd Thi prducts ut

the mret with iux Chiese mde es.

OuTSide Of bAngkOk





bReAkdOwn Of hiSTORicAl TAke-up RATe Of ReTAil SpAce by lOcATiOn, Q1 2010 Q1 2011

TAke up RATe Of cuRRenT Supply by cATegORy, Q1 2011



Smll icreses were reistered i ll zes r Q1 2011. The City d

outer City res were up by rud 0.7 - 0.9% while i the Suburb

re icrese pprximtely 1.1% ws recrded. This reects the

rwi csumer cdece ter the difcult lcl d lbl evets

2009 d 2010.

Te up rte ll cteries, except supprti retil, is mre th 95%.

Supprti retil cmmds ly 85% d c be explied by the

relice custm rm wrers i the fces tht the retil cmpet

supprts. Lwer levels fce ccupcy ver the pst ew yers

ccut r this s this mes less peple usi the utlets. I sme

situtis the spce r supprti retil is t lre r the size the

fce it supprts d sme cvert t fce use r ther uctis such

s eductil/trii cetres.

demAnd TAke-up




The slump i csumer cdece r much 2008 d 2009 ws the

result the glbl Ficil Crisis, which cused Thilds gDP t

shri. While cdece be t ssume sustied upwrd pth i

the witer perid 09/10, this ws severely deted llwi the

prtests i april d My. Hwever Q3 witessed retur t the risi

tred d Q4 ws the hihest qurter i the lst ur yers. I Q1 2011

this ell rm Q4 by pprximtely 24%, due t my ctrs, such s the

urest i the Middle Est d nrth aric, seismic dissters i Jp

d Mymr, risi il prices d ds i suther Thild.

Surce: Bureu Trde d Ecmic Idices, Clliers Itertil Thild Reserch

cOnSumeR cOnfidence index (cci)

demAnd dRiveRS fOcuS





ReTAil SAleS index by QuARTeR

Surce: B Thild, Clliers Itertil Thild Reserch

Remr: Yer 2002 = 100, E = Estimted by Clliers Itertil Reserch

The prtests i Q2 2010 hd impcted the retil mret but i Q3 2010

the verll ptter spedi retured, d this shws ptimism r the

uture. Fr Q4 2010, the B Thild recst retil sles shwithe hihest levels i the lst ve yers, eve cmpred t the previus

Christms d new Yer hlidy sess.

Credit crd use ver the pst ve yers hs icresed by rud 60%,

d these crds re mre te used i rized retil ceters. The

recet umbers idicte ll i spedi duri the prtests d pic-

up i Q3 2010. The urth qurter, the lst qurter the yer, icludes

the Christms d new Yer estivls, s credit crd use vlume ithis qurter every yer is usully the hihest.

digiTAl ReTAilS

The ntil Electrics d Cmputer Techly Ceter (nECTEC)reprted the umber iteret users i Thild i 2010, bsed

survey results rm www.truehits.cm, t be mre th 21 milli,

icrese erly 15% rm 18.3 milli peple i 2009; d ccrdi

t the nECTEC reprt the umber iteret users is t rud 33%

the ppulti i Thild with reter umber expected r B.

Retil develpers re therere li t pprtuities t expd their

sles chels, by pei their w lie stres. Hwever the umber

This wh shp lie is still lwer th my cutries i asi. The

ir cditied shppi experiece i Thild reects wy lie tht

icludes siict etertimet cmpet which llws mily d

rieds t ejy their time tether ut the trpicl het d the

iteret will hve difculty cmpeti with this r sme time t cme.

I the lst qurter 2010 tw bi plyers i retil busiess stepped it

the lie shppi busiess. The Mll grup fcilly luched the M

olie Deprtmet Stre (Mds: www.mds.c.th) December 8 2010

d will prmte mre th 30,000 prducts i 11 cteries. They ls

pl t icrese the umber prducts vilble r lie shppi t

but 100,000 ext yer.

Cetrl rup luched their w shppi lie website, www.cetrl.

c.th i which TnT will be respsible r the listics. Bi C ls hve

website r shppi lie www.tbiclic.cm, but buyers must

t Bi C utlet t pic up the prduct. I dditi t the mjr retil

plyers there re ew etrts it the mret such s Uber Mll the

rst 3D shppi mll lie d www.2010MeSle.cm by ksir

B. a survey by Mster Crd Wrldwide ud tht Thi peple re

iterested i shppi lie, with vere vlue prducts buht

lie icresi t 18,150 bht per pers, mre th the lst survey

pprximtely 5,000 bht.

ReTAil SAleS

TRendS



The retl rtes i every re icresed rud the 4% mr q/q r Q1

2011 reecti the rwi cdece i the retil sectr d the ect

revtis lder prperties.


RenTAl RATe duRing The yeAR Q1 2010 Q1 2011

RenTAlS





STRengThS

Retil cetres re plces t ly r shppi but etertimet

lctis i their w riht. B scres well i this rerd d c

rw rm this i urther ehci the retil experiece.

Eve i times ucertity shppi still remis ey cus peples

lives s well s ecessry ctivity d therere the sectr is mre

immue rm cyclicl evets th ther sectrs.

My cetres re uderi revti d this dds t the retil

experiece s well s icresi retl rtes. Imprved desi helps t

icrese trfc w t the upper rs mder retil cetre d

therere this llws hiher retl rtes t be chred.

weAkneSSeS

My retil ceters i B hve bee pe r mre th 15 yersd my mre re i stte decy, bslete, r with bd lyut d

retil mix, therere develpers d wers re strti t revte r re

rre the lyut d ccept i i the ext ew yers.

With limited plyers i the retil mret the desi retil cetres my

eed t be rereshed. Mre ivti i the rchitecture retil cetres,

especilly Cmmuity Mlls wuld help t ivirte the mret d dd

t the B shppi experiece.

OppORTuniTieS

The pei up aSEan ecmies culmiti i the asi Ecmic

are i 2015 culd led t reter demd r whlesle ceters t

cter r rwi trde. The Chiese prject i B-n is reecti

this.

The develpmet ew cdmiiums i previus greeeld r lder

develpmet res presets ctiued pprtuities r the creti

cmmuity cetres cteri r these ew ppulti clusters.

Future relxti zi restrictis bsed ew cesus shuld

llw r the urther develpmet lrer scle retil d etertimet

cetres utside the city cetre.

ThReATS

Curret lbl ecmic ucertities d lmi eerl electi

still hut setimet i rwrd.

Future restrictis the develpmet lre scle retil cetres i the

cetre culd stymie rwth i the mi shppi re B.

Hwever mve rm qutity t qulity by the cstt ivtive

redevelpmet existi retil spce culd led t urther dymism.

Cslidti the Hypermret sectr it eectively tw mi plyers

culd led t mre mplistic prctices. Hwever duply c be

just s cmpetitive d csumers hve ther chices such sdeprtmet stres d cmmuity mlls i price becmes prblem.

SwOT AnAlySiS



Appendix



11/12

ReTAil lOcATiOnS



ReTAil mARkeT cATegORieS

The rized retil mret i Thild c be divided it seve mi

cteries, bsed size, chrcteristics, ds sld, d prici:

1) So ma / So ctr

2) dartt Stor (ures r this reprt iclude std-le stres

ly; thse lcted i shppi mlls re t icluded)

3) hrart

4) cot ma

5) Sat Stors

6) etrtat co (this des t iclude etertimet res i

shppi mlls, s these represet itrisic prt the shppi mll

mix)7) Sort Rta

Note: For the purposes of the report, retail refers to organized retail services andexcludes traditional single proprietor outlets often located in shophouses and marketsconsisting of predominantly small traders. Also, supermarkets have been excluded

from this report.


12/12

cOllieRS inTeRnATiOnAl ThAilAnd

mAnAgemenT TeAm

RETaIL SERVICES

ashrw Wcht | Seir Mer

aDVISoRY SERVICES | HoSPITaLITY

Je Mrc grret | Directr

PRoJECT SaLES & MaRkETIng

Mchi orwpis | Seir Mer

RESIDEnTIaL SaLES & LEaSIng

npsw Chtephrd | netitr

oFFICE & InDUSTRIaL SERVICES

nrum Rdsirvrpht | Seir Mer

aDVISoRY SERVICES

nptr Tiechutim | asscite Directr

REaL ESTaTE ManagEMEnT SERVICES

Bdid Chyitu | asscite Directr

InVESTMEnT SERVICES

nur Suwtiul | asscite Directr

Ws Rttijjuul | Seir Mer

RESEaRCH

aty Pic | asscite DirectrSurchet kcheep | Seir Mer

VaLUaTIon & aDVISoRY SERVICES

nichls Brw | asscite Directr

Phchsu Phrmthut | asscite Directr

Stip kreemh | Seir Mer

Wid Susuw | Mer

PaTTaYa oFFICE

Mr Bwli | Seir Sles Mer

Supee Strjitsi | Seir Busiess Develpmet

Mer / ofce Mer

CollieRS inteRnational thailand:

B ofc17/F Plechit Ceter,2 Suhumvit Rd, kltey,B 10110 Thild

Tel +662 656 7000

fAx +662 656 7111

emAil [email protected]

Py ofc519/4-5, Ptty Secd Rd (oppsite Cetrl FestivlPtty Bech), nprue, Blmu, Chburi 20150

Tel +6638 427 771fAx +6638 427 772


ReSeARcheR:

Thildaty Picasscite Directr | Reserch


ReSeARcheR:

ThildSurchet kcheepSeir Mer | Reserch


480 fces i 61 cutries 6 ctiets

The third lrest cmmercilrel estte services cmpy ithe wrld

The secd mst recisedcmmercil rel estte brdlblly

US$2 billi i ul reveue

over 2 billi squre eet udermemet

over 15,000 pressils

This reprt d ther reserch mterils my be ud ur website t www.clliers.c.th. Questis relted t

irmti herei shuld be directed t the Reserch Deprtmet t the umber idicted bve. This dcumet hs

bee prepred by Clliers Itertil r dvertisi d eerl irmti ly. Clliers Itertil mes

urtees, represettis r wrrties y id, expressed r implied, rerdi the irmti icludi, but

t limited t, wrrties ctet, ccurcy d relibility. ay iterested prty shuld uderte their w

iquiries s t the ccurcy the irmti. Clliers Itertil excludes uequivclly ll ierred r implied

terms, cditis d wrrties risi ut this dcumet d excludes ll libility r lss d dmes risi

there rm. Clliers Itertil is wrldwide fliti idepedetly wed d perted cmpies.

accelerti success.

Uited Sttes: 135

Cd: 39Lti americ: 17

asi Pcic: 194

EMEa: 95


Documents

Bangkok Retail Market Report Q1 2011 | Colliers International Thailand