1.3 Demand – Supply
Overall Retail Market Analysis
Supply
Due to sluggish economy and the weak consumer confidence, there is a tough road ahead of Thai retail sector. The retail business grew at rate 3.1% outpaced country GDP at 2.8% at 0.3%. A weak global economy has resulted in a sluggish number in all sectors including retail, residential market.
Despite a lowering in retail tax from the Government in q4 2015 and a new record high in international tourist arrivals in the country, the overall retail sector is still in a long been recovery period since 2013. A dip in retail market growth has been seen for the past 2 years from June 2013 to September 2015.
As a result, a various number of retail and mix used developers have postponed the start of construction and adjust several strategies to tackle the unexpected “bumps along the road” in this recovery period.
The future supply in 2018 will be EmSphere, Mega Rangsit, Bangkok Mall, and Central M adding additional retail space to support urbanization of surrounding provinces. Developers are expecting economy to recover by the time malls grand opening giving more incentives for renters to rent out retail spaces.