Billions to be spent upgrading Bangkok's Ratchaprasong

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RETAIL
Billions to be spent upgrading Ratchaprasong
Pichaya Changsorn
The Nation

BANGKOK: -- RETAIL and property giants yesterday announced a combined Bt60 billion worth of investment projects to turn the Ratchaprasong area into one of the top downtown districts in Asia, rivalling Singapore's Orchard Road, Japan's Ginza and Hong Kong's Central district.

Chai Srivikorn, president of the Ratchaprasong Square Trade Association, said new projects being developed by Central Group, Minor Group, The Erawan Group, Gaysorn Property Group, Platinum Group and other members of the association, would create "a major tourism phenomenon in Asia".

The retail, wholesale, hotel and MICE (meetings, incentives, conventions and exhibitions) projects are expected to increase the number of tourists and other visitors to the area by 50-100 per cent to 600,000-800,000 per day, or 220 million people annually within the next three years.

Among the new projects is Central Group's plan to embark on the biggest-ever renovation of its CentralWorld shopping mall, the Bt7.5-billion The Market by Platinum project, the Gaysorn Tower 2 project valued at Bt5.8 billion, and Magnolia Group's Bt15-billion hotel and residential projects. Isareit Chirathivat, general manager of Central Pattana, said CentralWorld's renovations would encompass an expansion of its retail spaces including the Zen and Isetan department stores, the lifestyle dining zone, the Sky Walk elevated pathway, Centara hotel, and the participation of two or three new "international retail anchors".

The renovation works will commence in the first quarter of next year and take eight months to complete.

Isareit said the investment would exceed Bt10 billion, but he could not reveal more details until the project is approved by the company's board and reported to the stock-market authorities.

Chai said the in the next three years, the Ratchaprasong district would increase its office building area by 149,000 square metres, its hotel accommodation capacity by 3,900 rooms, its residential space by 382 units, and its convention area by 40,320 square metres.

At present, the Ratchaprasong area has 884,200 square metres of retail space. It attracts 400,000 visitors per day or 146 million yearly, 80 per cent of whom are Thais. Of the foreign visitors, 80 per cent are Asian travellers.

Chai said an important strategy was to make visitors to feel they are |"fulfilled" in making a one-day visit to Ratchaprasong, since statistics show the average stay of foreign tourists in Bangkok is just one and a half days.

Ratchaprasong will also capitalise on its "walkable urbanism", thanks to a Bt400-million investment that its members are makng to extend the "Skywalk" elevated pathway from the Ratchaprasong intersection to the Platinum Mall in Pratunam.

Platinum Group president Somboon Wongrassamee said it had been entrusted by the Crown Property Bureau to lease its land situated adjacent to the Big C Rajdamri hypermarket to develop the 13-storey Market by Platinum project, which will cover an area of 226,500 square metres and house more than 3,000 shops.

The Market by Platinum will have no shops selling brand-name products, and will instead be a market for small Thai retailers to show their craftsmanship, similar to the merchants at the famous Chatuchak weekend market, he said.

It will also feature well-known restaurants from across the country, he added.

Erawan president Kamonwan Wipulakorn said the group, which had completed the Bt400-million renovation of its shopping complex at the end of last year, would complete the 30-storey, 63,000-square-metre Gaysorn Tower 2 in 2017.

Meanwhile, Minor Group's vice president for strategy and investors relations, Chaiyapat Paitoon, said the group planned to invest more than Bt600 million to renovate its Four Season Hotel and rebrand it under the umbrella of its flagship Anantara brand from March 1.

Chai said Chinese tourists were among the main targets in terms of increasing the overall number of foreign visitors to the area in the next three years, but it would be "guesswork" to say how many of the targeted 64 million additional visitors would come from the Chinese market.

The Ratchaprasong developers' announcement yesterday came after the Mall Group, Thailand's second-largest shopping-mall developer, unveiled a Bt50-billion plan late last year to invest in six new mall projects, on Bangkok's Sukhumvit Road, and in Hua Hin and Phuket.

Asked about the massive investments in Thailand's retail sector, Central's Isareit said he was not too concerned about the risk of oversupply of retail investment in the Ratchaprasong area.

"Look at Hong Kong. They have many CBDs [central business districts] even though they have a small population, and [they have many] tourists as well," he said.

Source: http://www.nationmultimedia.com/business/Billions-to-be-spent-upgrading-Ratchaprasong-30252807.html


-- The Nation 2015-01-28

[Bluespunk]

"Asked about the massive investments in Thailand's retail sector, Central's Isareit said he was not too concerned about the risk of oversupply of retail investment in the Ratchaprasong area."

Well you should be.

Edited January 27, 2015 by Bluespunk

[kotsak]

Big words as usual.. SSDD

[WhizBang]

Thailand is not Hong Kong, or Singapore. Both of those countries have rule of law.

Is the Thai building boom bubble going to burst soon? I, for one, cannot see what is sustaining it.

[kingalfred]

Of all the infrastructure that needs improvement,Bangkok spends millions on "Shopping Mall designs". Priorities saying everything! "At present, the Ratchaprasong area has 884,200 square metres of retail space. It attracts 400,000 visitors per day or 146 million yearly, 80 per cent of whom are Thais. Of the foreign visitors, 80 per cent are Asian travellers." So its Thais, Chinese, Japanese and Koreans spending. Farangs are past the "shopping mall phenomenon", we know where to buy same products a great deal cheaper elsewhere!

Edited January 28, 2015 by kingalfred

[MaiChai]

Moved out of Bangkok due to lack of infrastructure and urban planning. Basically they are building up areas to the point where the area becomes saturated with people and getting in and out by car involves long waits in traffic. Ratchaprasong is a good example. Huway Kwang another. Living in Bangkok involves long waits in traffic and dangerous motorbike taxi trips through congested traffic! Staying on topic i can't see how Ratchaprasong can be developed further other than more overcrowding and building upwards.

[BSJ]

Oh goodie, another shopping precinct to draw in the rich big reasonably well off moderate impoverished Thai middle class who are in debt up to their ears!

[rasmus5150]

This is just great. Now there will be even more room for the people of Bangkok to hang out in free air-condition, but when they have to do their shopping they will still go to MBK and Pratunam.

[smutcakes]

Real shame to see the Four Seasons departing from their current location. It really is/was a fantastically run and great hotel. I hope Anantara can replicate to some extent. Four Seasons has a certain cache about it which is difficult to replicate.

[Don Aleman]

" Rival Japan, Hong Kong, Singapore " shopping extravaganzas will never happen. What, considering the extensive planning usually done in these type " blue Sky " projects, will probably happen is that no consideration was given to exactly when/where/how/residents impact/zoning/traffic and proper permits with valid approvals, ( "permit no good -- tear down ! ").

The upside to this proposal is that. PRIVATE money will be used and the taxpayers just have to put up with 3 to 5 years of disruptions to their already, ( BKK ), hectic lives. Then, predicable failure, years later and Japan, Singapore and China fall out of their chairs laughing and paying off bets as to when not if !

[tomloughney]

Thai numbers always fascinate me. 220 million people visiting a shopping mall per year. So everybody in Thailand visits 4 X per year? 12 Million in Bangkok so all of Bangkok goes 20 times per year? 800,000 people per day?

NYC Times Square gets 50,000,000 per year.... this place will be 4 times more popular that that or Disney, or the Grand Market in Istanbul?

Hogwash.....I think they added a zero or 2......

[rubl]

Brilliant plan!

Now only a good solution to the overcrowding with those annoying human beings, cars, taxis, busses and so.

[Docno]

I need to go back and review what led up to the Asian Financial Crisis of 1998...

[rubl]

I need to go back and review what led up to the Asian Financial Crisis of 1998...

You might discover it started in Thailand in 1997

[Classic Ray]

I hope their "walkable urbanism" reflects the recent court decision to force the BTS to install elevators at every station, and includes the provision of step-free access from the footpaths and stations to all the buildings in the development.

Architects and developers here need to consider the spending power of families with pushchairs and the elderly and disabled in wheelchairs and concentrate less on providing beautiful expanses of stairs and steps and more on functional slopes, elevators and level footpaths to provide facilities for the less able-bodied as the law requires.

Not everyone with money is young, or will remain so. Visit Japan to see how they have developed their environment to reflect an ageing population. The "grey baht" will become increasingly important!

[villagefarang]

Real shame to see the Four Seasons departing from their current location. It really is/was a fantastically run and great hotel. I hope Anantara can replicate to some extent. Four Seasons has a certain cache about it which is difficult to replicate.

It started off under Peninsula, then became part of Regent Int., followed by Four Seasons and now Anantara will take over. It is still the same hotel and still many of the same owners. I wouldn’t get too excited. I happen to be partial to the Regent era myself.

I used to live in this area before moving to Chiang Rai. We flew down to visit friends recently, I still love the area and was amazed at the changes over the last couple of years.

Edited January 28, 2015 by villagefarang

[Baerboxer]

Thailand is not Hong Kong, or Singapore. Both of those countries have rule of law.

Is the Thai building boom bubble going to burst soon? I, for one, cannot see what is sustaining it.

Yes, the way the Chinese government cracked down on HK protesters demonstrates the rule of law. HK isn't a country btw.

[FangFerang]

Another Shopping Mecca? Like SE Asia really needs another one?

When I first came as an atypical tourist (something I learned and with a bit of snark later became proud of), shopping in a mall was the last thing on my mind. I wanted Thai food, Thai music, Thai history, Thai culture and Thai friends and to experience 'Thainess'. In my travels, in the main they are the sweetest and most polite people I have ever met-- sometimes infuriatingly baffling, but a unique and precious human resource.

When I noticed that others being late stopped bothering me, bad directions given were not malicious but saving face, and that Thai kindness was not just a myth, I felt I had gained and learned something.

Something I would really like to see is a Bangkok mall offering only Thai made handcrafts, pottery, clothing and sculpture, selling Thai movies with English subtitles, Thai CDs with an English translated insert, Thai restaurants featuring the foods from all the provinces, and Thai cookbooks in English...now THAT is a mall I would go to and happily exchange coin. It would help all the artisans and craftsmen upcountry and downcountry to have a presence in a city that welcomes literally millions of visitors each month.

Mr. PM, I know you hear some of this...I hope you welcome good will.

[trogers]

Oh dear...somtam is now Bt100 a plate in that location. Will the price be jacked up to Bt200 due to rising rents?

[Docno]

I need to go back and review what led up to the Asian Financial Crisis of 1998...

You might discover it started in Thailand in 1997

My point exactly... :-)

[DLock]

Some really miserable people today.

If it bothers you so much, let me help you.....Don't go there.

See how easy I made that for you.

Personally, I like the big new malls for the shops, restaurants, cinemas and new things.

[trogers]

Some really miserable people today.

If it bothers you so much, let me help you.....Don't go there.

See how easy I made that for you.

Personally, I like the big new malls for the shops, restaurants, cinemas and new things.

Cannot avoid being a guide to friends and relations from abroad.

[jaiyen]

They say they will build a new covered walkway from BTS so now we can walk almost to Pantip Plaza without going out in the heat or having to dodge the traffic......cant wait. Wont ever go shopping at the new centres. We like to support the small Thai traders who struggle to make a living.

[taony]

Why does central world need to be renovated? Wasn't it just completely rebuilt a few years ago?

If some of these malls started selling more of a variety of things, or specialty items with available choices (meaning not every store sells the same brand of the same thing), it wouldn't be so bad. But whatever expansions are done will just be replication s of the same old boring expensive stuff. People will continue to go for free ac and maybe some food if there are any affordable places even left

[taony]

Some really miserable people today.

If it bothers you so much, let me help you.....Don't go there.

See how easy I made that for you.

Personally, I like the big new malls for the shops, restaurants, cinemas and new things.

Its Bangkok, there aren't really many choices for getting around. Some of us have to inevitably at least pass througj on a daily basis.

You see how they want to double the number of daily visitors, but the infrastructure in the area hasn't been updated since it was built! Same sorry excuse for roads around there. Same lineup of 'yam' all along the roads telling everyone to go at the same time. Its already chaos.

[alantheembalmer]

"The Market by Platinum will have no shops selling brand-name products............"

Oh, yes they will; but only knock-offs.

[Jackson86]

" ...rivalling Singapore's Orchard Road... "

kinda disputing this. I don't think Singapore is even comparable to Malaysia.

[Wilsonandson]

Taller skyscrapers is what I'd like to see. Kuala Lumpar has petronas towers, Taipae has Taipae 101 its time for Bangkok to have a taller skyscraper.

[DogNo1]

I wonder if they are going to devote any money to improving the pedestrian experience. The sidewalk around the Grand Hyatt - Erawan is always in bad shape and the sidewalk running down Soi Mahatlek Luang 1 beside the Four Seasons is blocked by a parking space for vans which is often full. There is NO sidewalk on the opposite side of the street so pedestrians walking down the soi have to walk out in the street and dodge cars. Pretty shabby for what is touted as being a premium area. Also, if the walkway is extended from the Ratchaprasong Intersection to Central Platinum it won't be helpful to pedestrians if you still must pay to go through Chidlom BTS Station to get there. At an FCCT presentation tonight, a knowledgeable Thai panelist said that the problems with the roads, cycling paths and walkways have been brought to the attention of the governor of Bangkok often with little improvement. The farang panelists simply had no comment about the pedestrian experience while one presentation attendee said that he quite enjoyed walking around Bangkok but had no comment on the condition of the sidewalks. I wonder what TV members think about their experiences walking around Bangkok. Also, my experience staying in a premium Anantara property wasn't good.

[Classic Ray]

Please see my earlier post for my experience of walking around my part of Bangkok with my son in a pushchair. It has really focussed my attention on how poorly both locals and visitors are served when walking. There is really no concept of devoting any thought, care or resources to foot passengers as opposed to car drivers, and the disabled and child carers are the lowest of all.

Kerbs are up to a foot above the road surface with kerbstones not fitted to the footway surface and dropped kerbs are a rarity, let alone slopes leading into shops. Not one drain cover is fitted flush with the footway, and the concrete around them is crumbling and loose or collapsed. No thought is given to a pedestrian path, pavements just peter out and force you into the road.

Signposts and lampposts reduce the walking space available, all priority being given to vehicles. In Ratchadapisek, Huay Kwang, metal sewer pipes have been laid in six places across the pavement outside True Tower by the City Government, BMA, so say to act as barriers for motorcycles and prevent snatch thefts. The rest of Ratchadapisek has no such pipes laid, so this is just an excuse for bad planning and policing. No thought given to the disabled or pushchairs at all.

This will come home to roost as the population ages and are confined more and more to their homes by poor facilities outside. Good luck Thailand.