Mixed-use projects mushroom in Bangkok

Mixed-use projects in Bangkok and its environs are expected to support growth and meet customer demand, but might also lead to oversupply, experts say.

The competition in the capital’s Rama IV neighbourhood is expected to intensify, as two mixed-use projects are currently under development - Dusit Central Park and One Bangkok.

The 46-billion baht Dusit Central Park on Silom Road is being developed by  hospitality firm Dusit Thani Group in collaboration with retail property giant Central Pattana (CPN). The hotel sector launched on September 27 and the offices and shopping mall are slated to open mid-2025.

The 120-billion baht One Bangkok property on Wireless Road is being developed by TCC Assets and Frasers Property (Thailand). The project is scheduled to be completed by 2026, with the Parade and The Storeys shopping malls opening later this month.

Separately, The Mall Group’s 50-billion-baht Bangkok Mall at the Bang Na intersection is expected to open in 2026 or 2027.

The Real Estate Information Centre (REIC) expects an additional 16 mixed-use projects in Bangkok and the surrounding area to be operational by 2027.

CPN chief development and commercial officer, Chanavat Uahwatanasakul, said the company is focusing on developing large mixed-use projects in several landmarks.

“Each mixed-use project has passed in-depth market and target customer behaviour studies, as each requires an investment 20-30% higher than other projects with a payback period of nine years,” he said.

Noting that CPN was not worried about oversupply as project feasibility had been thoroughly investigated before investing, he pointed out that the company’s existing projects are being transformed to support city growth, competition and customer demand, such as in the Bang Na, Pinklao and Chaeng Watthana neighbourhoods.

Frasers Property (Thailand) CEO Thanapol Sirithanachai said several mixed-use projects have been launched to support the city’s expansion. “More large mixed-use projects will be coming in the next three to five years,” he added.

While confident that the Rama IV neighbourhood has the potential to become a new business hub, he also cautioned new property developers to study demand and supply before investing.

“Mixed-use project competition has intensified, so each project should determine clear target customers,” he said, adding that their Samyan Mitrtown project in Pathumwan district aimed to attract customers with food and learning centres.

REIC acting director Wichai Wiratkapan said large Thai companies are interested in mixed-use projects, as land prices have increased and free space is hard to find.

He warned, however, that office buildings would face oversupply, noting that many companies have reduced working space and opted for a hybrid work arrangement.

“The Rama IV neighbourhood is at risk of oversupply as many office buildings are opening,” he said.

Surachet Kongcheep, managing director of Property DNA, said he was not worried about the oversupply of mixed-use projects as they were being gradually launched but agreed with Wichai’s take on the oversupply of office buildings.