LWS identifies real estate development in 2024 as a big problem covering every dimension: people - society - environment amid changes in the lifestyles of people in society after the COVID-19 outbreak.

From collecting and analyzing behavior and the needs of home buyers in 2024 of the product development department along with the analysis of 'Kid' Creative Thailand as a creative media that plays a role in gathering knowledge about creativity. Under the supervision of the Creative Economy Promotion Agency (Public Organization) or CEA

has presented the E-book Trend 2024: REMADE ANEW that has compiled in-depth analysis. Follow the trends and movements in the creative business sector that will occur in 2024 were processed and found that housing development And service work in 2024 must take into account three dimensions, consisting of people (Population), society and culture. (Social&Culture) and ecology and environment (Environment)

People side Population

Nowadays, people in each generation have different needs. which is the heart of housing development and related services to meet different needs in a unique style (Uniqueness) to meet the different needs of buyers in each generation, for example

  Ageless Marketing or marketing without age limits Today, no consumer wants to be called an elderly person. Instead, consumers tend to choose products/services that reflect the image of what they want to be. Not what they are And this applies to the elderly as well. What consumers want is Freedom to use various services There is no age limit, such as exercise. fashion clothes Furniture design for all ages

Solo Service from a lifestyle that requires more freedom, being single, and traveling alone. Make the need to receive service for customers who come alone. Therefore, it is a service that is becoming more popular, such as restaurants that have space for people to sit alone. or designing a space for single people But want to have an atmosphere that connects with people outside, such as a co-working space or an apartment for singles. It tends to be more popular.

Build-to-Rent (BTR) is building houses for single people to come together. It could be sharing a house with a stranger. Or the gathering of a group of friends and a gang of single people. This home rental culture has continued to increase in China, Asia, and the United States since 2018, including couples who do not want children, with 60% saying that not having children means they have more money to save to travel, and 74 % said that having pets can help fulfill family members, but they also want more housing in the form of rentals.

Mr. Praphansak Rakchaiwan, Managing Director of LWS Wisdom and Solution Company Limited (LWS), a real estate research and development company in the company. L.P.N. said From the results of the LWS survey, it was found that at present housing prices are continually increasing as a result of rising land prices combined with higher construction material prices, energy prices, and higher interest costs. This causes housing prices to increase, contrary to the current income generating ability of consumers.

From the above situation, housing purchases are likely to decrease. In 2022, the condominium market (Bangkok-Metropolitan area) has the value of ownership transfer proportionally shrunk to 34% from previously as high as 45% of 650 billion baht.

When comparing the value for money between renting and buying, it was found that the selling price of condominiums in Bangkok and the surrounding area has increased compared to 2018 by 29%, while the rental rate has decreased by approximately 7% compared to 2018. with the same period As a result, the direction of choosing condominiums in the form of rentals in the first quarter of 2023 increased by 56%, compared to a decrease in purchasing demand of approximately 5% when compared to the same period.

As a result, we have entered the Generation Rent era that emphasizes renting rather than buying. Especially the new generation like Gen Z (First Jobber), Gen Y, who have more than 50% renter status and have an average rental rate of 6,000 - 9,000 baht/month with an average monthly income in the range of 20,000. - 40,000 baht and more than 70% are single, reflecting the behavior of most new generations who like to be alone, like convenience, like new technology or innovation.

Hybrid Work or working in combination Plan your attendance at the company and work remotely in a balanced way It's what Gen Z is looking for the most. Find jobs with the highest criteria listed on LinkedIn as “Flexibility” at 77%.

From this trend information, LWS has surveyed the behavior of current home buyers and found that Services that will answer the needs of living in the form of Hybrid Work are transportation or travel services such as MuvMi, Grab, Line Man, Bolt, Cabb, etc. that provide application services as the basis of convenience for the new generation. It responds well to the lifestyle and it is expected that by 2028 the market value of calling for car services through the Application will be at 153,800 million baht, with the market starting to see a clear recovery starting in the third quarter of 2022. There are foreigners. who use Grab's car-hailing service up to 45%

While in the development of condominium products and residential homes Design that meets the needs of people in this era is to design a common area that can accommodate "Using alone among people in a common area" has a relaxed atmosphere. It has a design that supports the use of the elderly and people of all ages. Meanwhile, the living area should take into account the residence of single people. Responding to the rental market and more families with pets

Society and Culture (Social & Culture)

Digital Nomad is a flexible working model emerging from the mass migration wave from 2020-2025, which marks a new chapter in history. Digital technology plays a role in the lives of people today who can work anywhere, anytime. As a result, it is estimated that there will be 1,000 million Digital Nomads worldwide by 2035. This trend requires real estate developers to adjust their project development concepts to meet the needs and behavior of today's buyers by space design and additional services added to facilitate customers who want to use space for work as follows

1. Design Residential space supports short-medium term rentals. and common areas that support remote working conveniently, such as having appropriate work desks with electrical outlets. and comprehensive internet signal Provide online meeting space, which can be divided into quiet zones. Or you may arrange a photocopier service area. Coffee and snack booth while having a resting area after work that is calm and relaxing.

2. Adjusting the time for using services in common areas: This is due to the change in working hours. This causes the timing and demand for using the common areas to be inconsistent. This results in difficulties in service times in common areas for more than 40% of all service users. Resulting in the need to open extended service hours to more than 20 hours/day or 24 hours, like at present there are both 24-hour co-working and 24-hour fitness.

3. Restaurant reservations Places to visit with a knowledgeable local guide and interpreter: From changing places for work to places to relax. and tourist attractions Make service users want to get more experiences from traveling. Therefore, providing search, selection, and reservation services for restaurants and tourist attractions Including famous tourist activities and local tourist attractions along with tour guide service Additional interpreter services are available if it is a tourist attraction where the local language is spoken. It will help give service users additional experience from changing workplaces.

4. Travel facilitation services to tourist attractions: in addition to using travel services from guides Self-traveling car rental service is another option that is popular among tourists. To travel to various places who want to relax This service is another element that complements the Digital Nomad trend.

Ecological and environmental aspects (Environment)

             This year 2024 is the year of responsibility. and completely change the way we live together. According to a Mastercard report, 58% of consumers are more aware of their environmental impact since the outbreak of the 2019 novel coronavirus (COVID-19). 19) and 85% are willing to change their personal behavior to help address the climate emergency. According to the 2022 Edelman Trust Barometer, 52% of consumers in 28 countries want to see businesses Dealing more with environmental crises Meanwhile, data from Uniliver reports insights that consumers are demanding change. and choose to support brands that create the least impact on the environment

Regenerative is the concept of new circulation. Applied to brands that support sustainability by emphasizing a 4-sided mindset: reducing risk, zero harm (Zero Harm), creating good things, and considering circularity. used to formulate strategies Establish a framework from the start of the business. Managing costs and profits before changing to grow into a business that not only takes advantage but knows how to give back to the world.

Politics of Plastic The word sustainable may sound far-fetched. Therefore, there is a trend to use the term Politics of Plastic, which sounds closer, is more tangible, and clearly communicates the problem of single-use plastic waste.

From this trend Real estate project development in 2024 needs to focus on developing projects that are environmentally friendly. and reduce environmental impacts from the construction process From the LWS survey, it was found that the development of housing projects in 2024 and in the future needs to focus on the following issues.

1. Organize space and provide waste separation services: According to the LWS survey, more than 77% of new generations give importance to waste separation. until leading to a turning point who have turned their attention to buying products that are environmentally friendly, more than 70%, therefore, the development of residential projects needs to pay special attention to the environment. There is a waste separation point. to automatic recycling collection cabinets for condominium projects, etc.

2. Install a Solar Roof: Currently, the cost of producing electricity from solar cells averages 10 baht per watt from 80 baht per watt 15 years ago, while electricity production from fossil energy tends to increase. Currently in Bangkok There are more than 3 million households, but less than 10% of them have installed solar cells. It is expected that 3 years from now this will increase to 20%. The installation cost is approximately 110,000 baht per 3 Kwp, which can save money. Electricity earns an average of 2,000 - 3,000 baht per month. From this trend, installing a solar roof in a residential development project is becoming a basic equipment that real estate entrepreneurs must install for all types of housing throughout the project. Horizontal and residential condominiums To meet the needs of buyers In addition to installing in the area Residence already In developing common areas, it is necessary to install a solar cell system to save energy. and reduce project costs From a study by LWS, it was found that from an electrical power of approximately 3.2 kWp - 5.4 kWp, an average electricity cost can be reduced by approximately 3,000 - 6,000 baht, which has an estimated installation cost of 170,000 baht with a payback period of approximately 5 years.

3. Increase the installation of electric vehicle charging points: The use of electric vehicles is continuously increasing in popularity. It is predicted that in 2024 there will be as many as 120,000 electric cars. Current real estate developers see the importance of using electric cars. More than 20% of condominium residents want to add parking spaces with EV Chargers. Most condominium projects currently have EV Chargers, starting with an average of 2 parking spaces, but it is expected that this will not be enough. Therefore, it is necessary to increase approximately to more than 4 parking spaces to accommodate the increase in the number of electric cars. and to support a good environment in the future

4. In the area of real estate design There are suggestions for adhering to 3 principles: Zero Waste Design, reducing carbon footprint, and using materials that help restore nature. It may refer to guidelines for designing zero energy buildings (Zero Energy Building, ZEB) with design principles starting from building envelopes reducing heat. Lighting system that uses natural light efficiently High efficiency air conditioning system Using alternative energy and adjusting the project landscape to reduce the surrounding temperature.

      “In summary, 2024 is the year that the real estate sector It is driven by important factors: Development is based on sustainability. Taking into account the design of the residence and services that take into account the conditions of society, culture, and the environment Under the concept of sustainable housing, taking into account the appropriate use of resources and technology amid changing social conditions. climate and the environment,” Mr. Praphansak said.

Proofreading....Suree Silawong

Source:https://www.bangkokbiznews.com/property/1107290

at 8/1/2024