Community malls in Bangkok are opening at such a fast rate that their total area will exceed that of hypermarkets by the end of the year, says a report from Colliers International.

Surachet Kongcheep, senior manager of Colliers Thailand’s research department, reports that more than 298,400 sqm of retail space is scheduled to be completed by the end of the year. The total supply is estimated to grow from around 5,694,400 sqm at the end of the second quarter to more than 5,945,000 sqm at the end of the year.

“Community malls are still the most fashionable category in the retail market in Bangkok. All retail developers need to stay close to their clients, so they try to develop smaller models in each community,” said Kongcheep.

The total area of community malls is now around 625,000 sqm, only 40,000 sqm less than hypermarket and other category.

Approximately 52 per cent of all supply is located in the urban area with the rest in the Bangkok suburbs. Most retail centres completed during the past three to four years were outside the city area. Most new retail projects in suburban areas are community malls.

Kongcheep also reports that renovations of older malls will continue to be popular with retail developers and operators as they attempt to keep pace with competition from attractive new shopping centres and community malls.

“Retail developers and operators are increasingly focusing on other cities as well, especially those near Thailand’s borders that already see many foreigners coming to do their shopping,” added Kongcheep.

Community malls or neighbourhood shopping centres offer a variety of services and goods that cater to modern lifestyles. Among the offerings are eateries fast-food outlets, gourmet food markets, pet salon, gyms for kids, up-market spas and concept stores.

GB