The past three years have marked an interesting change in Thailand, and especially Bangkok, in terms of real estate. We have experienced a change in political leadership, uncertain global economic conditions that have been felt even in our domestic economy, and a real estate market that has been bearish for a while.
But through hardship we learn, and those lessons necessarily teach us how to adapt, change and grow. In the same vein, the hardship of the past few years has taught developers that they need to improve their products to meet modern international standards and gain a new competitive edge.
We have also seen new plans and developments to improve the quality of life of Bangkok residents. New parks being added and others expanded to provide the necessary space for residents to exercise, rest and relax. For example, Chulalongkorn University has transformed a 29-rai plot from commercial land to a new community park in an area located on Chulalongkorn Soi 5. Patumwananurak Public Park, with 40 rai, is being built behind CentralWorld. And Benjakitti Park is to be expanded by 360 rai over the next two years.
New mass-transit lines are actively being constructed to help reduce the strain on the roadways, which will help ease traffic congestion once complete. The Bangkok Metropolitan Administration (BMA) is also attempting to regulate street-food vendors -- though it is winning few friends for the way it has gone about the job so far. The BMA contends that many street vendors contribute to traffic congestion and leave little space on the pavements for people to walk. Sanitation and management of food waste also could be better.
Bangkok is world-famous for street food vendors so the removal of vendors is a controversial move. City planners will have to carefully manage this change to reduce congestion while still allowing vendors to provide their services in a clean and organised way. If we look at all of the iconic world-class cities, most have had to undergo these types of changes before they reached the level of cleanliness and organisation we enjoy in those cities today.
The work is not done, though. The BMA needs to focus more on continuing to clean up the capital in terms of solid and liquid pollution, and plan ways to address traffic issues on the overburdened roads. We also hope that the plan to move electricity lines and other cables underground will soon be carried out in the central business district, and become automatic policy in new development areas, which will greatly improve the overhead ambiance by removing clutter and allowing trees along the roadsides to grow more fully and naturally.
On the traffic front, more roads or fewer cars are not the only solutions. The technology used in vehicles can also have a massive impact on the air quality, heat gain and quality of life in Bangkok. Mandating that new vehicles be equipped with emissions control systems such as catalytic converters, and strict diesel emission regulations combined with more generous incentives for electric and hybrid cars could have a significant impact on reducing smog, heat and dust, resulting in significantly improved air quality.
In terms of private investment from investors and property developers, 2016 and 2017 has turned out to be an interesting time for Bangkok real estate. Many property investment firms and developers are planning grander, more holistic development concepts in all sectors of the market from residential to office and retail. We've seen downtown Bangkok residential prices growing with a shift towards higher-quality and better-equipped units with greater creativity in exterior facade design, interior layout designs and amenities. Leading the pack are projects such as The Ritz Carlton Residences, Marque Sukhumvit, 98 Wireless, Four Seasons Private Residences and The Residences at The Mandarin Oriental Bangkok.
MORE GREEN: Left, Benjakiti Park is to be expanded by 360 rai over the next two years. Photo: PEERAWAT JARIYASOMBAT
With land prices increasing continually, many developers are thinking about ways to innovate in order to attract buyers and maximise their value propositions. This drive is leading Bangkok into the future because developers are adding technology and sustainable practices to improve the quality of their products while offering more value to end-users. They are doing this by taking a sustainable approach to the living experience and the built environment.
For example, many developers are adding more green space into their projects and incorporating connected technologies to make life safer and more convenient for residents. "Placemaking" is a growing trend with master-plan concepts that bring together grade-A office, world-class retail and premium residential into one space to enhance the living experience for occupiers and residents.
For example, Gaysorn Group recently opened its reimagined Gaysorn Village to the public. The project spans multiple buildings connected by skywalks and features grade-A offices with innovative workplace designs, and retail mixed-use spaces with a focus on placemaking that allows visitors to find work and leisure in one area.
TCC is planning mixed-use projects along Rama IV Road from Samyan all the way to Klong Toey intersection including Samyan Mitrtown and the newly announced One Bangkok, and a development planned for the plot next to the Queen Sirikit National Convention Center near the Klong Toey intersection where EZ Park is currently operating. As well, Dusit Thani Hotel Group, TCC Group and Central Group are planning a huge new mixed-use project in the plot of land where the Dusit Thani Hotel is situated.
MQDC (Magnolia Quality Development Corp) has also been a pioneer of this new approach by introducing Iconsiam and Whizdom 101, both large mixed-use projects with a retail and residential mix that is organised in a master-planned community with very convenient mass-transit access and modern amenities. How positively these new master-planned projects will affect the lives of Bangkok residents will depend on execution.
The next five to 10 years is an exciting time to be in Bangkok and watch forward-thinking planners transform the capital into a modern, cosmopolitan metropolis worthy of being ranked with the likes of New York City, Hong Kong and London. The many changes that are happening in the built environment will continue to transform the look and feel of downtown Bangkok, and it is hoped that the mixed-use, master-plan concepts featuring more sustainable approaches will ensure that Bangkok people will enjoy a better quality of life.
Aliwassa Pathnadabutr is the managing director of CBRE Thailand. She can be reached at bangkok@cbre.co.th; Facebook: CBRE.Thailand; Twitter: @CBREThailand; LinkedIn: CBRE Thailand; Website: www.cbre.co.th
THINK BIG: An artist's impressions of One Bangkok, a mixed-use development project on Rama IV owned by billionaire Charoen Sirivadhanabhakdi. Photo: Supplied