Mixed-use demands more from developers
- Huge levels of new CBD office supply expected over the next 3 – 5 years.
- Several ultra prime Branded Residential developments will drive sales value’s skyward.
- New ‘Mixed-Use’ developments will ensure a sense of character, community and place
Bangkok is witnessing a ‘Mixed-use Revolution’ with multiple exciting large-scale schemes underway across the capital. The new development phase means that a host of vertical mixed-use schemes are due to complete over the next few years comprising a variety of uses and concepts and competition for tenants should be fierce.
Whilst “mixed-use” is not new to Bangkok, the sheer scale and level of sophistication of the upcoming supply is expected to present a big leap forwards with several prominent new developments located in prime CBD locations, ensuring excellent transport links and parking, 5 Star Hotels with Branded Residential, high rise office towers and expansive retail amenities.
“Significant pressure is expected to be exerted on existing office landlords as tenants will be tempted to relocate to the new offerings. Although the sheer level of new supply currently estimated in excess of 100% of the existing CBD office stock, and due to come on line progressively over the next five years may lead to a softening of office rents earlier than predicted as existing landlord’s fight to retain tenants” commented Robert Collins, CEO Savills Thailand.
Mixed-use developments present many challenges but if successful can reap big rewards. The benefits of a successful scheme include place making, economies of scale, operational efficiencies and a positive community impact, while signs of failure include island sites, “nowhere space” incoherence and disorientation.
According to Simon Smith, Head of Asia Pacific Research at prominent property advisor, Savills, “Today, ‘amenity’ is the new differentiator marrying health, green tech and smart design. The ‘public realm’ is all-important as is a sense of character, community and place. Developing a sense of community is increasingly a priority especially as new generations value meeting, collaborating and sharing. Traditional aspirations for a house in the suburbs with its lengthy commute are changing.”
The topic “mixed-use” was unveiled at a Savills event “Navigating the Mixed-Use Development Landscape in Bangkok” at Gaysorn Village. Over 100 clients from across the region listened to a series of presentations on retail, hotels, residential / office and the overall market.