Developers push mixed-use projects amid changing customer lifestyles

Real Estate March 19, 2018 01:00

By Somluck Srimalee
The Nation

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By 2025, nearly bt700 bn would be invested in projects close to the CBD



The changing lifestyle of city folk is making them buy residential property close to their place of work, which has inspired property developers to invest more in mixeduse projects in Bangkok’s central business district (CBD).

Developers are investing more than Bt581.5 billion from this year until 2025.

Mixeduse projects combine residential, hospitality, office and retail space in the same area.

According to a survey by The Nation, the TCC Group owned by tycoon Charoen Sirivadhanabhakdi is investing Bt153.5 billion over the next seven years in developing three mixeduse projects in Bangkok’s CBD area. 

The first project is One Bangkok, located on Rama IVWireless Road over 104 rai of land. The project will have an office block with combined office space of 500,000 square metres, 1,000 rooms in a luxury hotel, retail space and three ultraluxury condominium buildings. Planners expect 60,000 people to use the entire complex.

The next project is PARQ, worth Bt20 billion and located on 24 rai, close to the Queen Sirikit National Convention Centre on Rama IV Ratchadaphisek Road, opposite the FYI Centre, which is also owned by TCC Group. This project will have office, retail and hotel buildings in a total development of 320,000 square metres.

The third TCC project is the Samyan Mitrtown complex, worth Bt8.5 billion, which is being developed by its subsidiary Golden Land Property Development Plc. 

This project is located on 13 rai on Phya Thai Rama IV Road. The project will have office, serviced apartments, and condominiums in a total area of 220,000 square metres.

Magnolia Quality Development Corporation (MQDC), in which the Chearavanot family that owns CP Group, are major stakeholders, is another property firm going for mixed-use projects in Bangkok – on its own and as a joint venture. Its three projects are worth a combined Bt170 million.

The first project is Forestias, over 300 rai at Bang NaTrad Road KM7. 

The Bt90billion project will have residential, retail, office, health centre, innovative building centre and a green area.

Another project is IconSiam over 50 rai on Charoen Nakhon Road. This project, being develฌoped as a joint venture with Siam Piwat and CP Group, has retail, office, residential, and hotel buildings.

MQDC is also coming up with Whizdom 101, worth Bt30 billion, located on Sukhumvit Soi 101. The project over 43 rai combines a condominium, community mall, offices and a sports club.

Other property developers have also announced plans to develop mixeduse projects on land near the CBD in keeping with changing customer preferences.

For instance, Supalai Plc plans to develop on land where the Australian Embassy was previousฌly situated on Sathon Road, a mixeduse project. The Supalai Icon, worth Bt20 billion, will combine condominium, office, and retail complex.

Origin Property Plc also plans to develop three mixeduse projects worth a combined Bt70 billion at three locations –Phya Thai, Thonglor, and Phrom Phong.

“When you drive a car on Rama IV towards Sathon Road, you will see more construction of mixed-use projects, with more than half of them being owned by beverage tycoon Charoen Sirivadhanabhakdi. 

This change in business model over the next decade in Bangkok’s CBD for mixed-use projects is due to change in customer behaviour change and the rising price of land, which makes it difficult for develฌopers to only build condominium projects,” said Thai Condominium Association president Prasert Taedullayasatit. Prasert is also chief executive officer of Pruksa Real Estate Plc.

He added that a number of mixed-use projects would be developed in Bangkok until 2025, worth more than Bt700 billion. Their location close to the CBD area will result in people moving from outer areas to live close to their place of work. Property developers are developing smallsize residential units close to the mass transit system.

Origin Property Plc’s chief executive officer Peerapong Jaroon-Ek said the company had decided to develop three mixed-use projects from this year until 2025 to cater to the needs of customers, who are seeking one space for all their activities. The mixed-use concept will answer all their lifestyle needs, he said.

However, he said the location most suited for mixed-use projects are located in the CBD, challenging the customers to buy them, he said.

BTS Group Holdings Plc is also interested in developing a mixed-use project over 7 rai on Phya Thai Road, located close to BTS Phya Thai station. 

The office and hotel project worth Bt10 billion will be announced this year. The project will be developed by its subsidiary U City Plc, the company’s chairman Keeree Kanjanapas said recently.

U City also plans to develop the Roi chak Sam building over 5 rai on Charoen Krung Road, a mixeduse project which includes a hotel, food court, and retail. Details will be finalised in 2019, he said.

“When all mixed-use projects in Bangkok are completed in 2025, it will change Bangkok’s CBD landscape into a work and lifestyle destination,” Prasert said.