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Plus Reveals 6 Factors Affecting Residential Property Development in 2021

18 Dec 2020 plus news and update

PLUS takes note of trends that will influence the residential properties market in 2021, including wellness, senior living, affordability and newly popular locations on the rims of Bangkok
The direction of the property market needs to be cautiously monitored. Despite welcome news of COVID-19 vaccines, economic recovery will take time. Although the sky has yet to clear for the real estate circle, buying power is still present from the ‘real demand’ group.
Developers are advised to add value to their projects through security technology, and by offering an administrative service which comes with repair teams that professionally look after project residents.

Ms. Suwannee Mahanarongchai, Deputy Managing Director, Business Strategies and Asset Management, Plus Property Company Limited, the full-service professional property and facility management agency, revealed that PLUS’s evaluation of the current situation, based on information that has been gathered, calls for caution to be exercised over the tendencies of the property market in 2021.

Despite the welcome news about COVID-19 vaccines, overall economic recovery will not be immediately noticeable. Purchasing power from the group of ‘real demand’ buyers who wanted to make their purchase for their own residency will start to increase. A portion of these buyers have delayed their purchase decisions in the hope of observing the direction of the economy in 2021.
Next year will continue to present a golden opportunity for property purchase, as the prices set by developers will remain attractively discounted. Interest rates will also remain low.

Plus Property expects residential property development, from here onwards, to be influenced by the following 6 notable factors:

Wellness considerations in design. The wellness trend has become an important consideration in property development in the past 2-3 years, but more weight is now being given towards this consideration in light of the world having encountered COVID-19. Wellness will be considered right at the start of project development (residential as well as office projects), and in the design of equipment’s and amenities’ functionality, in tandem with the application of universal design.

Environmentally friendlier materials will be utilised. These factors will play increased roles in project development as well as in buyer’s decision-making. Changes in ways of life that come with the New Normal include a reduction of physical contact and the allocation of space within a residence to accommodate working at home (which will continue to be a major mode of work for some time).

Relaxation corners or exercise spots inside the common area at a residential development or an office will also be given importance, as they contribute towards wellbeing.

Senior Living. Residential properties that accommodate an aging society are being co-developed by the public and private sectors. These projects, collaboratively undertaken by property developers and prominent hospitals, take into account wellness and safety.

Space at some hotels are also being converted into elderly care establishments with on-site nurses providing close supervision. Technology is also being exploited to enable communications between doctors and the occupants of residential properties.

Properties with affordable prices. Condominiums priced between 1-3 million baht and targeted at first jobbers continue to see uninterrupted demand. Developers have started to increase their launches of projects within this price range. At the same time, townhomes and duplex houses priced above 3 million baht are expected to make up another group of in-demand properties.

Green space and vegetable gardens. An edible garden allows for the creation of toxic-free food to feed one’s family. This trend has gained popularity worldwide among residential developments and office buildings. Space for food generation has been factored into the evaluation process under the WELL standard and Fitwel standard; awards are presented to buildings that are designed and managed in keeping with the wellness requirements of building users.

Urbanization. Housing areas have become more spread out due to expanded transportation networks and the government’s Smart City initiative. Newly popular housing locations are sporadically dispersed throughout Greater Bangkok. This is true for outlying areas of Bangkok that are seeing construction of mass rapid transit lines and their extensions – examples are the Red Line and Green Line, both of which are being extended toward Pathumthani.

Another newly popular location is the New Krungthep Kritha (Srinagarindra - Rom Klao Rd.) area, which became accessible only recently and which possess road linkages to the Ramkhamhaeng and Rama 9 areas. Furthermore, New Krungthep Kritha offers speedy commutes to Suvarnabhumi Airport and the Eastern Economic Corridor (EEC).

New housing locations have also sprouted up in provinces that are being promoted as ‘Smart Cities’ such as Phuket, Chiang Mai, Khon Kaen, Chon Buri, Rayong and Chachoengsao.

Take comfort in professionally delivered after-sale service. After-sale service is a factor that has been gaining prominence in the decision-making process of homebuyers. The mode of living at condominiums, and to some extent at detached homes and townhomes, now require increasingly detailed after-sale service that offers a greater service scope.

This is especially true for repair functions where the residents at each community may not be able to handle on their own, such as changing the light bulb or fixing the faucet. After-sale service also encompasses affairs that lends toward the attractiveness and the overall condition of a residential project in the long term.

Examples include work relevant to the maintenance of building systems and the amenities within the residential development, all of which contribute significantly to the good condition of the property project as time passes.

“Aside from the 6 aforementioned factors, homebuyers are currently also placing importance in value for money. Buyers are not only looking at the price and whether it was low or high, but are instead deliberating whether the price to be paid would be worth the gains to be had. Property developers therefore have to make adjustments, especially by increasing value for new projects they are looking to develop.

For instance, applying technology to security affairs and utilising mobile applications to help with administration functions at a project”, said Suwannee.