The outbreak of the coronavirus has affected the property market in Bangkok, in particular the retail and condominium segments. People are travelling less and avoiding crowded places including shopping malls to reduce the risk of falling ill.

“This event is hitting the retail market and has caused a significant decrease in traffic inside many shopping malls,” said Punnee Sritanyalucksana, chief operating officer and head of retail at Edmund Tie Research (Thailand).

“Sales volumes of luxury and fashion items in some malls dropped by 20-25% in early February. With the outbreak expected to have a continuing impact on retail malls, landlords are looking for mutual solutions with their anchors and tenants to ride out this difficult situation.

“Rental revenues could decrease a little in the first quarter of 2020 because some anchors and tenants pay rentals as a percentage of their gross revenues. The occupancy rate in the retail market is expected to be steady in the first quarter of 2020.”

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