Office return rates, strong partnerships, and increased tourist spending are amongst the key drivers of this growth.
Bangkok’s shopping centre sector has witnessed a 43% increase in revenue compared to pre-COVID-19 levels, reaching approximately 1.2t baht by the end of fiscal year 2023.
Additionally, the sector’s profit also saw an increase of around 250b baht during the
Key drivers of growth include office return rates, robust partnerships, dominance of food and beverage sectors, leveraging medical tourism, increased tourist spending, influence from events and influencers, enhanced mobile app usage, global partnerships. Additionally, large-scale township developments such as One Bangkok, The Forestias, and DUSIT CENTRAL PARK supporting economic transitions and integrating diverse real estate enterprises.
Key market players such as Central and Robinson groups have emerged as leaders, commanding 27% of the market, closely followed by hypermarkets at 28%. The Mall Group holds a 5% share, Siam Piwat holds 3%, and LH Group and Seacon Square each claim a 2% share, with Future Park following at 1%. Collectively, other groups account for approximately 32% of the market.
Meanwhile, the total net lettable Area (NLA) of shopping centres in downtown and midtown Bangkok reached 3 million square meters by fiscal year 2023, with downtown areas alone hosting 56% of this space. The remaining NLA is distributed across midtown areas including Silom-Sathorn, Ratchada, Sukhumvit-Phetchaburi, Ramkhamhaeng, and Phaya Thai-Bang Sue.
“The EmSphere,” a new addition near BTS Phrom Phong Station, added over 200,000 square meters of retail space. The sector faced a significant revenue drop of 30% to 40% from 2020-2021 due to pandemic effects, requiring rent reductions and innovative use of vacant spaces.
Recovery began in mid-2022 with eased restrictions and by 2023, international tourism rebounded to 71% of pre-crisis levels, boosting service usage and reducing rental discounts to under 4%.
“The Bangkok Shopping Centre Business is set to expand by no less than 650,000 square
meters in 2024, primarily through large-scale township projects,” said Nattha Kahapana, managing director of Knight Frank Thailand.
“Fresh markets and modern flea markets may emerge as indirect competitors due to their lower costs and flexibility. Additionally, new VAT laws on goods under 1,500 baht will enhance fair competition,
benefiting local entrepreneurs despite potential consumer price increases.”