With Thailand experiencing shortage in real estate, many developers are turning properties into mixed-use developments, meaning that what would be a design hotel in Silom will also have offices, retail outlets, luxury residences and even parks in order to goose up revenue and generate sustainable income for the property.
This wave of mixed-use properties is being led by TCC Asset Co. Ltd., the property subsidiary of the Thai beverage tycoon Charoen Sirivadhanabhakdi, which invested a total of Bt148.5 billion across three mixed-use complexes; the One Bangkok, the PARQ, and SamyanMitr Town.
Other developers, like the Bhirombhakdi family’s Singha Estate, have also been investing in mixed-use projects across the capital.
According to a recent survey conducted by The Nation, Bangkok’s mixed-use projects have an approximate total investment value of Bt649.2 billion, effective until 2025. This is due to the capital’s land shortage, as well as the preference of people living in the capital to stay close to their workplace as well as any retail and entertainment venues they prefer.
JLL Managing Director SuphinMechuchep says that, with the market facing a bout of instability and rising prices, single-use developments are become less and less favourable. As a result, more and more developers are option to develop mixed-use projects, and from a design hotel in Silom to large plots of real estate, both large-scale complexes and single buildings are being developed as mixed use projects. Property consultancy firm, JLL, took note of the trend, and expects it to continue for a bit.
A mixed-use development brings with it land use synergies, as combining multiple facilities within a single project lets the developer contracted on the work to draw on a common resource, cutting down on costs while maximising land use. The individual components also compliment each other.
Retailers enjoy a steady flow of consumer traffic from the residents in the residential side of the project, while allowing for a more expensive meal that’ll help with talking to hotel guests and office works. Meanwhile, office tenants benefit from the diverse offerings raise the appeal of the company.
Research regarding these mixed-use properties say they these mixed-use projects allowed for a new ecosystem which it accomplished by bringing home, lifestyle and work at one place, on top of adding market value for the properties.