Bangkok to see two new prime retail projects in H1 2026

The projects will yield 85,000sqm of new space.

According to a JLL report, two prime retail projects are anticipated to add 85,000 sqm to Bangkok’s retail market in H1 2026, increasing supply pressure amid already fragmented consumer sentiment and ongoing economic challenges.

“Intensified competition is likely to result in further yield compression, as developers and operators increase investment in innovative retail concepts and manage higher occupancy costs to remain competitive,” the report said.

Here’s more from JLL:

Despite persistent headwinds and supply pressures, Bangkok’s retail market sustained positive momentum in Q3 2025, recording quarterly net absorption of 43,700 sqm, generated from both newly completed and existing projects.

F&B tenants led demand trends, accounting for half of total take-ups, followed by the household retailers. The market also benefited from a resurgent international brand leasing activity, with a 50% q-o-q increase in the number of deals.

Vacancy improvement hindered by temporary renovation activity

Positive demand trends contributed to a marginal improvement in the vacancy rate by 9 bps q-o-q to 4.6%. Ongoing renovation works in major shopping centres created temporary vacancy, and subsequently limiting further recovery prospects.

On the supply side, Bangkok’s prime retail stock reached 3,871,500 sqm, representing a 1.1% q-o-q increase following the completion of Central Park Bangkok. This new mixed-use development by Central Pattana PCL added 42,000 sqm to the market.

New premium supply and robust demand supports positive rental growth

Bangkok’s prime net effective rent increased by 1.7% q-o-q, reaching THB 1,714 per sqm per month. This growth, improved from the previous quarter, was primarily driven by new projects commanding premium rents above market average.

Whilst market yield remained stable at 8.75% in Q3 2025, ongoing macroeconomic challenges and weak consumer and tourist sentiment continued to exert pressure, despite sustained momentum in demand and rental trends.