Mixed-use projects are the answer to meet the needs of the new generation and also the way to balance the need for recurring and sales income for property firms, as a result property developers are investing more than Bt100 billion to develop such projects over the next three years.
According to a survey by The Nation, nine property developers have unveiled plans to develop mixed-use projects between 2015 and 2018. The mixed-use projects combine offices, condominiums, retail and hotel. They serve the demand of the new generation to have office and living area at the same location, while retail outlets and hotels will serve their lifestyle needs.
Among the major mixed-use projects planned are Iconsiam at Charon Krung by Siam Piwat Group; Whizdom 101 at Sukhumvit 101 by Magnolia Quality Development Corporation Co (MQDC); Chao Phraya Estate at Charoen Krung by Country Group Development; Asiatique phase 2-5 at Charoen Krung by TCC Land Group; Super Tower on Rama 9 by Grand Canal Land; Central WestGate at Bang Yai district; Nonthaburi by Central Pattana; Singha Complex at Asoke by Singha Estate. In addition, Siam Sindhorn Co is investing Bt26 billion to develop Lang Sung Village, and Salan Development Co is investing more than Bt10 billion to develop the Saint Residence as mixed-use projects.
“We are developing mixed-use projects to serve the young generation’s lifestyle, as they prefer to live in the proximity of their place of work. This will reduce their transportation time and they’ll have more time for relaxation,” Suttha Ruengchaipaiboon, an executive vice president of MQDC, said.
Whizdom 101 by MQDC will offer 340,000 square metres of space – 20,000sqm for retail, 30,000sqm for offices, 10,000sqm for a sport and wellness club and the rest for condominium units. Up to 17 rai (2.7 hectares) of the 43-rai site will be occupied by three condo towers containing possibly more than 1,800 units. The project is awaiting approval of its environmental impact assessment and building permit. Construction is expected to commence next quarter and be completed by mid-2018.
The main target customers for the condos are younger people from both Thailand and overseas, especially China and Asean Economic Community members who are interested in doing business in Thailand, Suttha said.
“Despite many projects in the area, we see it as a positive prospect, and our project is different from the others,” Ben Taechaubol, director and chief executive officer of Country Group Development, said after introducing their latest mixed-use project Chao Phraya Estate that includes two hotels – Four Seasons and Capella Hotel Bangkok – and one condominium building worth Bt32 billion early this year.
He added the key to the success of this project is that Four Seasons Hotel and Resorts will manage the facility – both the hotel and its residential project, the Four Seasons Private Residences Bangkok.
“When customers buy our condominium project, they will get luxury hotel standard service that will create more value for the customers,” he said.
“Key targets for the residences will be locals, 55 per cent, while 45 per cent will come from overseas markets such as Singapore, Hong Kong, London and Dubai,” he added.
Chairman of Super Tower’s developer Grand Canal Land, Yotin Boondicharern, said that the concept of developing the tallest building in Asean – Super Tower – will cover a total construction area of 320,000 square metres. The Super Tower will be the main building of the Grand Rama 9 complex that also includes office buildings, a shopping complex, luxury hotels, a convention hall and condominiums.
Meanwhile, the Bt10-billion CentralWestGate mega-mall in Nonthaburi, which will open in August this year, also plans to develop office and condominiums in the future to serve the market demand after its shopping centre starts to operate.
Wallaya Chirathivat, senior executive vice president for business development, design and construction of Central Pattana Plc, said earlier that this project would be developed in three phases. The first phase will be the retail complex, which will cost Bt10 billion for both land and construction. The second phase will be the residential complex aimed at the middle- and upper-income markets. The last phase will be the commercial building.
She added that when the retail complex starts to operate, it would create more than 10,000 jobs. It will also drive residential growth in Nonthaburi’s Bang Yai district to exceed 150,000 units within five years from 50,000 units worth Bt150 billion currently, based on residential projects launched in this location.
“People want to stay close to their working area and also need to stay at a location that has more facilities to serve their lifestyle needs such as shopping centre and mass transit system. Bang Yai district meets all of their needs,” she said.
Singha Estate’s CEO Naris Cheyklin said that the company had decided to invest Bt10 billion to develop Singha Complex over 11 rai (4.3 acres) at the Asoke-Phetchaburi intersection. The mixed-use complex will include office space, a 4,000-seat concert and convention hall, a hotel, and retail space. Construction is expected to begin in mid-2015 and be completed in 2017.
Siam Sinthorn Co, a property arm of Crow Property Bureau, has invested Bt26 billion to develop a mixed-use project that includes condominiums, serviced apartments, a hotel and retail facility spread over 14 buildings called Lang Suan Village. The project will be completed in 2019.
“We are developing a mixed-used project because that is the trend in people’s lifestyle, as they want residence, working place, green area, and relaxing area in the same location,” Siam Sindhorn Co director and CEO Chalaluck Bunnag said.
Century 21 (Thailand) Co managing director Chana Nanthajantol said that developing mixed-use project is the trend for property firms amid limited availability of land in the central business districts and the demand for residences near places of work and relaxation.
Meanwhile, property developers also need to develop property projects that generate both recurring and sales income to balance their portfolio, he said.