With land prices rising and market volatility being recorded, Thai developers are avoiding single-use developments, reports local media. Instead, mixed-use developments are becoming more feasible for both single-building developments and large-scale complexes.
“Mixed-use developments that incorporate a mix of retail, office and/or accommodation units are nothing new in Bangkok. On top of many existing mixed-use developments, there are several new projects coming on stream, such as One Bangkok, The Icon Siam, The Parq, Samyan Mitrtown, and Singha Complex,” says JLL Managing Director Suphin Mechuchep to the Bangkok Post.
Mixed-use developments allow for space to be used more productively since it can provide multiple uses within a single development. Developers also benefit from sharing common resources, which lower development costs and maximise land usage.
It also allows each segment within the development to benefit. For example, retailers receive a steady flow of foot traffic drawn from residents, hotel guests and office tenants while residents enjoy the convenience of having shopping options connected to their living space. While the mixed-use trend was once limited to larger developments, it is now spreading.
“Mixed-use developments are not limited to large-scale property developments that comprise more than one building with different uses. Several single buildings offer a mix of uses, a trend that is growing. The mixed-use development is a sound solution that tends to become a popular option for many future property developments,” says Suphin.
There are a number of small land plots in prime Bangkok locations as well as some redevelopment sites that can accommodate only one high-rise building. Developers will likely be lured to these spots, but must be sure they understand what is needed for success if building mixed-use projects.
“For these developments to be a sustainable success, getting the right mix of retail, office and accommodation is absolutely crucial. Design that allows for efficient property management is no less important,” says Suphin.
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