Report sees rise in Bangkok midtown retail occupancy and rental rates, downtown remains unchanged
Occupancy levels and rental rates both rose in midtown Bangkok during the first quarter of 2010, according to a study by real estate adviser DTZ. Downtown Bangkok occupancy and rentals remained unchanged at 94.2 per cent and THB2,290 per square meter per month respectively, however occupancy levels in midtown increased from 92.2 per cent in Q4 2009 to 93.2 per cent in Q1 2010 while rents averaged THB1,560 per square metre per month, a jump of 0.9 per cent quarter-on-quarter and 1.9 per cent year-on-year. DTZ predicted the midtown area will continue to attract local and foreign retailers who are looking to expand to more residential community areas. The Consumer Confidence Index (CCI) in January 2010 rose to 79.3, its highest level in 21 months, according to the Thai Chamber of Commerce. The CCI dropped slightly to 78.4 in February 2010 though, in part because of the political situation in Bangkok. The report said that, despite general economic stagnation in 2009, foreign brands continued to show interest in breaking into the Thai market. Big brands are expected to continue establishing a presence in Bangkok, the report said, citing the recent opening of a GAP store at the Central World Shopping Centre, and the scheduled opening of Taiwanese restaurant chain Din Tai Fung at the same venue in mid-2010.