"Lumpini Wisdom" has identified "Energy-Environment-Health" as the trending products for the year 2023 to meet market demands following the COVID-19 pandemic and the ongoing rise in energy prices.

Mr. Prabhan Sak Raksaiwan, Managing Director of Lumpini Wisdom and Solutions Co., Ltd. (LWS), a research and development company in the real estate sector under L.P.N. Development Public Company Limited, discussed the trends in product and service development for 2023. He noted that after the outbreak of the novel coronavirus (COVID-19) and the rising energy prices due to the war between Russia and Ukraine in 2022, consumer behavior has changed. Particularly, homebuyers are now prioritizing energy-efficient housing, environmental quality, and good hygiene, which have become essential and a new standard for residential development that real estate developers must adapt to meet the evolving needs of buyers.

"In the past, when discussing energy-efficient housing that is environmentally friendly and promotes good hygiene, it seemed distant. Homebuyers did not prioritize these aspects, thinking they would incur higher costs and deeming them unnecessary. However, since the COVID-19 outbreak in 2020, buyers have started to value environmental and hygiene issues, making them essential for residential project development, including services. In 2022, the war between Russia and Ukraine led to higher energy prices and electricity costs, prompting homebuyers to increasingly focus on energy-efficient housing and alternative energy sources. This presents a challenge for real estate developers to create energy-efficient housing and services that consider environmental factors and good hygiene, which will become more prevalent in 2023," Mr. Prabhan stated.

 

Given this trend, Mr. Prabhan stated that in 2023, real estate developers will adjust their business strategies in developing housing and after-sales services that emphasize these three main areas:

Energy:

Developers are likely to focus on energy-saving projects, including energy-efficient designs that consider building orientation known as Passive Design, and energy-saving methods through equipment or Active Design, such as installing solar panels to reduce electricity costs in homes. They will also choose construction materials that aid in energy conservation, install roof ventilation systems along with insulation, provide EV chargers for electric vehicles, and implement energy monitoring systems to track household energy usage. These features are expected to become the new standard for housing in 2023 and beyond.

Environment:

According to research from Baramizi Lab, 85.2% of Thai consumers prefer to live close to nature. This finding suggests that designing homes with green spaces will increasingly meet buyers' demands.

Additionally, developing projects with minimal environmental impact materials, such as using construction materials that reduce carbon dioxide (CO2) emissions or are recyclable for creating communal areas like roads and sidewalks, along with waste separation and management services, will be essential for residential project development in 2023.

Health:

Since the COVID-19 outbreak in 2020, the development of both condominiums and residential homes has placed a significant emphasis on good hygiene standards, which have become a benchmark for housing at all levels.

In addition to developing housing that prioritizes good hygiene, related products such as furniture, electrical appliances, and various equipment must also consider hygiene aspects. For instance, the Fit-in home decoration service from 10DK focuses on designing furniture that reduces the use of harmful substances, utilizing low-VOC coatings and paints that are safe for residents. They also prioritize natural materials, community products, and avoid intermediaries, while generating income for the community by employing local craftsmen. This service starts at approximately 200,000 baht, and as competition in similar business services increases, it will likely lower market prices, making healthy home services more accessible to the general public.

Mr. Prabhan stated that the focus on "energy conservation, environment, and hygiene" is not just a trend for housing development in 2023 but also applies to real estate projects at all levels, including hotels, office buildings, shopping malls, cinemas, warehouses, and industrial factories. These projects will incorporate construction and management standards that consider the three main factors mentioned above, using various criteria as indicators for construction and building improvements, such as the Leadership in Energy and Environmental Design (LEED) standards, WELL Building Standard, which evaluates buildings based on seven key concepts: air, water, utilities, light, exercise, environment, and mind, and EDGE, a green building system for residential and commercial buildings developed by the International Finance Corporation (IFC) to promote green building projects in developing countries using a simple scoring system.

According to a survey by Statista, a German research company, in 2017, over 19% of tourists were willing to pay more for stays at certified Green Hotels during their vacations. In Thailand, there has been a government initiative promoting environmentally friendly hotels (Green Hotels) since 2016, with continuous participation from the hotel industry every year. The goals of the Green Hotel initiative include:

  1. Promoting the efficient and effective use of resources and energy.
  2. Implementing good environmental management.
  3. Raising service standards.
  4. Expanding the network of environmentally friendly hotels to support government procurement measures for environmentally friendly products and services, as well as environmentally conscious consumption.
  5. Preparing for international environmental standard assessments to promote sustainable tourism development and reduce greenhouse gas emissions.

"From these trends and directions, we will see changes in the development of real estate projects, including residential projects, commercial buildings, and industrial developments, focusing on the three main areas of energy, environment, and good hygiene. This is not just a trend but is becoming the new standard for real estate development at all levels in 2023, aiming towards the development of sustainable cities by 2030, as Thailand and 193 member countries of the United Nations have committed to the Sustainable Development Goals to create a better world and improve the quality of life for everyone, achieving sustainable social, economic, and environmental development," Mr. Prabhan concluded.