News

Source: The Nation

The Bangkok retail market is now the most competitive it has ever been, with the expansion by retail developers in the central business district (CBD) and suburban areas.

The entry of new local and international retailers, combined with a challenging economic outlook and weak consumer sentiment is all adding up to the mix.

Despite a slowdown in retail sales, there is currently 1.1 million sq.m. of retail space under construction in Bangkok, which will bring the total completed supply in 2017 close to 8 million sq.m.

Within the CBD, the latest major retail developments to open are EmQuartier and Central Embassy, intensifying competition for existing malls such as Siam Paragon, Gaysorn and CentralWorld.

In addition, big developers continue to renovate their downtown retail centres such as Siam Discovery and MBK.、

As the major retail centres are chasing after the same group of consumers, retail events and promotions have  become ubiquitous leading to a cut-throat competition and heighted promotion campaigns, particularly gearing up to the festive season where consumer spending typically peaks.

The expansion by major retail developers to suburban areas may also in part draw consumers away from CBD malls, although the impact may be limited.

Bangkok’s suburban areas today are well served by quality retail centres, reducing the need for consumers to travel into the CBD.

To the North, Zpell@Future Park has just opened on 27th November. Opened on the same day in Eastern Bangkok on Ekamai-Ram Intra is Central EastVille, adding competition to existing malls in the area such as Crystal Park and Crystal Design Centre.

The Mall Group is also currently planning The Bangkok Mall on Bangna-Trad which is expected to be completed in 2017. To the West, CentralPlaza WestGate recently opened in August in the Bang Yai area, adding a major retail centre to an area where there have been limited retail developments.

The Riverside will also get its own luxury shopping complex in 2017 with the opening of IconSiam which will comprise a 500,000 sq.m. retail and entertainment complex, part of which includes a 36,000 sq.m. 7-floor Takashimaya department store from Japan which will be Thailand’s first.Amidst this competition, the segment that will find most challenging is community malls.

Community malls will be forced to adjust their strategies and have clear unique selling points and propositions to draw in consumers; otherwise they are likely to be overshadowed by major retail developments that have a bigger events and promotions budget.

It is essential for community mall developers to understand their target consumers’ needs and retain anchor tenants in order to compete in the long-term.

Source:Thailand Business News

Sansiri, the leading property developer in Thailand, has produced a video guide for the renowned tourist destination of Phuket. The short video provides 12 ways to enjoy island living and highlights the activities and attractions of the island town.

Golden Emperor Properties was awarded the Best International Property Agency title at the Sansiri Best International Property Agency Awards 2015.

Above:Terence Chan (right) Director of Golden Emperor accepted the award from Apichart Chutrakul, CEO of Sansiri (left)

Above:Kingston Lai (right) Director of Golden Emperor accepted the award from Apichart Chutrakul, CEO of Sansiri (left)

If you were alive in 1975, it probably doesn’t feel like it was that long ago.

In 1975, the Vietnam War ended; Medibank, Australia Post and Telecom (now Telstra) were formed; and Gough Whitlam was sacked.

That was all 40 years ago.

Much has changed in the four decades since those momentous events. Gen Ys, Gen Zs and Generation Alphas have been born. The internet, digital media, smartphones and social media took over our lives. Multiculturalism became a reality with Australia now a rich tapestry of different cultures.

Back then, we watched Jaws. Now, we watch The Lego Movie.

In 1975, the Australian population was 13.7 million people while in 2015 we’re nearing 24 million. The median age in the country was in the late 20s while today it’s 37.3.

But what else has changed? McCrindle Research has crunched the numbers:

EARNINGS
In 1975, the average full time earnings were $7618. Today, it’s almost 10 times more at $72,000.

BREAD
Back then, a loaf of bread cost 24 cents. Today, it costs $2.84 — we’re talking about proper bread here, not the 85 cents stuff.

MILK
One litre of milk used to cost 30 cents. Now, it’s closer to $1.45 a litre.

NEWSPAPER
The paper used to set you back 12 cents. Today, you’ll pay $2.50, about 20 times more.

PETROL
You probably think petrol is now dirt cheap at $1.20 a litre after world oil prices tanked recently. Well, in 1975, petrol was 57 cents a litre. It’s only just over double the cost.

HOUSING
Property is where the really scary figures come out.

In Sydney, the average house cost $28,000 in 1975. Today, it costs $850,194. That’s 30 times as much as it used to be. Your 10-times as much annual earnings isn’t looking too great right now, huh?

Melbourne is even worse, at 31 times the cost of 1975. Back then, the average house was $19,800. Now, it’s $615,068.

In Brisbane, it’s 27 times higher from $17,500 to $473,924.

In Adelaide, it’s 28 times higher from $16,250 to $459,258.

In Perth, it’s 32 times higher from $18,850 to $604,822.

In Canberra, it’s 21 times higher from $26,850 to $573,326

In Hobart, it’s 21 times higher from $15,200 to $322，274

YOUNG PEOPLE
Demographer Mark McCrindle said that while in some areas, the cost has been maintained but it’s in our demand and supply model of housing where the cost has blown out.

“There are 10 million more people than there was 40 years ago,” he said. “Households are a bit smaller so we need more homes than we used to and there are also foreign buyers and investors as well. So there’s a lot more demand than supply.”

Mr McCrindle said Australians should expect the rising cost of housing to continue and that young people will be in a much tougher situation than their parents were.

Those that dispute that young people today may have a tougher time than their parents usually like to argue that their parents had to deal with higher interests rates than Gen Ys today. But Mr McCrindle said that while that’s one factor in favour of young people, it’s not the whole picture.

“Lower interest rates are also making young people more comfortable with debt and many of them are now saddled with debt on depreciating valued items. But apart from interest rates, young people have also had to pay for university degrees, which their parents didn’t have to. And there are new categories such as internet connection and technology devices which their parents didn’t have to pay for. Those are basic things now, they’re essential.

“Back then, people started their economic lives at zero. Gen Y are now starting their economic lives in debt. That’s part of the challenge for young people today.”

Source：www.news.com.au