Tuesday, November 12, 2019

Mixed-use trend demands more from developers

Jun 25. 2019
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By The Nation

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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 locations in the central business district, ensuring excellent transport links and parking, five-star hotels with branded residential, high-rise office towers and expansive retail amenities, according to Savills Thailand.

“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 per cent 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,” said Robert Collins, chief executive officer of the property advisory services firm.

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.

Simon Smith, head of Asia Pacific Research at Savills, said: “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 of “mixed-use” was unveiled at a Savills event “Navigating the Mixed-Use Development Landscape in Bangkok”, held at Gaysorn Village on Tuesday. 

More than 100 Savills clients from across the region listened to a series of presentations on retail, hotels, residential/office and the overall market.

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