real estate information center Government Housing Bank to explore mixed-use projects in Bangkok and its vicinity in the first half of 2023

Date: 29 August 2023 Real Estate Information Center Government Housing Bank Surveying mixed-use projects in Bangkok-perimeter areas that are currently being sold and rented. in the first half of 2023 by definition of mixed-use projects in this survey. It is a real estate project with a total building area of 10,000 square meters or more and two or more types of buildings are used. It is an investment from a single developer or a joint venture. It may contain Residential condominiums, shopping centers, office buildings, hotels, etc.

Mixed-use projects surveyed in Bangkok and its vicinity. All statuses of construction surveyed consisted of 126 projects with total building construction area (GFA) of 15,312,966 square meters, divided into 1) completed projects. In Bangkok and its vicinity in the first half of 2023, there are 110 projects with a total construction area (GFA) of 11,462,394 sq m.

and 2) projects that are under construction and not yet constructed. that will be completed in the second half of 2023 until 2027, another 16 projects, with an area of approximately 3,850,572 sq m, such as Part 1 of the One Bangkok, The Forestias, and other medium-sized projects. It was found that during the year 2018 and 2019, more than 10 construction projects were completed, such as Icon Siam, Singha Complex, Samyan Mitrtown, Sindhorn Village and True Digital Park, etc.

126 mixed-use projects surveyed, with total building construction area (GFA) of 15,312,966 square meters, were found to be projects developed by listed companies (Listed Company) with a proportion of 56% and non-listed companies ( Non-Listed Company) has a proportion of 44%.

Types of real estate found There are uses in the area in order as follows:

1) Office building with a total area of 6,052,598 square meters, accounting for 39.5% of the total construction area

2) Retail space with a total area of 4,717,513 square meters, accounting for 30.8%

3) Residential condominiums with a total area of 3,428,750 square meters, accounting for 22.4%

4) Hotel has a total area of 914,614 sq m, accounting for 6.0%.

5) Serviced Apartments with a total area of 199,490 square meters, accounting for 1.3%

When separating the construction status of the mixed-use projects that surveyed the total building area of 15,312,966 square meters, it was found that 11,462,394 square meters of construction were completed, accounting for 74.9%, and projects under construction and not yet completed. Total construction was 3,850,572 sq m, accounting for 25.1%.

Mixed-use projects that have been completed and opened for rent or sale in the first half of 2023 have the highest use of office space, 39.7%, followed by retail space, 31.4%, 22.5%, and 5.9 residential condominiums. % are hotels and 0.5% are serviced apartments.

in terms of location It was found that it was in the Pathumwan zone. 2,674,046 sq m, accounting for 23.3% of the total construction area, of which 71.6% is used mainly for office buildings and retail space (38.6% are office buildings and 33.0% are retail spaces). The remaining 28.4% are residential condominiums, hotels and serviced apartments combined (18.6% are residential condominiums, 9.4% are hotels and 0.3% are serviced apartments).

Silom-Sathorn-Bangrak zone It is the second-largest supply area with 2,049,949 square meters, accounting for 17.9% of the total construction area, with 67.4% of the total being office buildings and the remaining 32.6% being retail space. Residential condominium and hotels combined (16.8% is retail space, 12.9% is residential condominium and 2.9% is hotel)

As for the Huai Khwang-Chatuchak-Din Daeng zone It is the location with the third largest supply, 2,008,164 square meters, accounting for 17.5% of the total construction area. This location has a proportion of retail space usage. Residential condominium and similar office buildings (31.9% are retail space, 30.9% are residential condominiums and 30.5% are office buildings), the remaining 4.3% are hotels and 2.4% are serviced apartments.

Mixed-use projects that have been completed and ready for rent or sale in the first half of 2023 are mostly within a radius of 500 meters from a BTS station. with a large proportion of 85.3%, followed by 11.0%, within a distance of 500-1,000 meters from a BTS station and 3.7% having a distance of more than 1,000 meters from a BTS station

Electric trains with completed mixed-use projects Lined up on both sides of the road, the top 3 most of them are the electric train lines that pass through the central business district, sorted as follows: 1) BTS Skytrain with a share of 33.6% 2) MRT Skytrain with a share of 18.5% and 3) BTS Silom Line with 14.2% share

If considering mixed-use projects that will be completed in the future, Pathumwan zone is a location where supply tends to grow high. The announced future supply until 2027 is 1,711,990 sq m, which is 14.9% of the current completed supply (11,462,394 sq m). The future supply will come from many large projects such as One Bangkok Project, Central Embassy Phase 2 Project and Aman Nai Lert Bangkok Project

Silom-Sathorn-Bangrak zone It is another location where supply has a high tendency to grow. And there is an announced future supply until 2027 of 732,585 square meters, representing 6.4% of the current completed supply. Future supply will come from several large projects such as Dusit Central Park, Supalai Icon Sathorn, Park Silom and Grande Center Point Lumpini.

As for the demand situation for mixed-use projects in Bangkok and its vicinity, the category of “office buildings” has a total supply of 4,627,314 square meters of building space with an average occupancy rate of 76% and is expected to have future supply that will be completed in the second half of the year. 2023 to 2027, more than 1,514,784 square meters

“Retail space” as of the first half of 2023 has an area of 3,622,357 square meters with an average occupancy rate of 85%, most of which are retail spaces that support the use of other types of buildings (Supporting Retail). The future is about 1,115,156 square meters and is mostly located in Pathumwan.

"Residential condominiums" in mixed-use projects as of the first half of 2023, there are 27,534 units in the plan, 23,946 units have been sold, and the proportion of units sold has accumulated 87% of the units in the plan. There are 359 units left for sale, it is expected that there will be an increase in the supply of residential condominiums in the future (2nd half of 2023 - 2027) approximately 7,099 units.

Mixed-use “hotels” in the first half of 2023 have a total supply of 14,232 rooms and the supply is expected to be completed in the future with another 4,341 rooms. Found that the waterfront location It was the location with the highest price at 15,500 baht per night, followed by Ploenchit/Wireless, Siam/Chidlom and Silom/Surawong. with a price level above 10,000 baht per night, the average occupancy of a hotel in Bangkok during normal times Found that hotels have an average occupancy rate between 70-80%.

As of the first half of 2023, there are 3 projects with 774 rooms of “serviced apartments” in mixed-use projects, and there is only one announced future supply, One Bangkok, with approximately 400 rooms expected to be completed by the end of the year. 2023 Serviced apartments still perform quite well compared to hotels. because there is a high proportion of long-term customers with an average occupancy rate of more than 70% since mid-2022.

Source:https://www.prachachat.net/property/news-1381360

Date 30/08/2023