As we approach the end of 2023, real estate developers are ramping up marketing strategies to boost sales and recognize revenue, while also starting to plan for 2024. Today, I would like to share some guidelines for developing townhome projects, which are currently popular due to their lower price point compared to single-family homes in the same area, while offering more usable space than condominiums, making them ideal for new families.

According to LWS, in the first nine months of 2023, there were 16,822 townhome units launched in Bangkok and its vicinity, accounting for 24.82% of the total 67,772 units launched. The value of these townhome launches reached 45.816 billion baht, representing 13.52% of the total project launch value of 338.655 billion baht during the same period.

This number of units and launch value reflects a continuous supply in the townhome market, while the demand for this type of housing continues to grow. The Service Design Center (SDC) research team has explored ways to develop townhome projects that receive positive market feedback, beyond just selecting suitable locations for development. There are three main strategies for developing townhome projects that resonate well with the market:

1. Create a unique project image through overall design that meets residents' needs.

Project development must establish a distinct image through the overall design of common areas, including entrance gates, clubhouses, communal gardens, and the homes themselves. The project design should integrate unique architecture from each area, which is crucial for instilling pride in buyers. It is undeniable that social status is important for working individuals across all three generations who appreciate recognition and the expression of ownership of their property.

2. Develop amenities within the project that cater to the behaviors of the target customer group.

Today's consumers, even with limited budgets, desire value for their money. This behavior is reflected in the competitive market, where developers are creating townhome projects priced between 2-5 million baht in Bangkok and its vicinity, yet offering amenities comparable to single-family homes. According to LWS's survey, consumers have specific demands for essential amenities within townhome projects, including:

2.1. Central park: A park that creates a serene atmosphere, suitable for relaxation and accommodating various activities.

2.2. Fitness or exercise room: Equipped with comprehensive exercise equipment such as treadmills, stationary bikes, air walkers, and dumbbells, allowing for a full-body workout.

2.3. Swimming pool: A beautifully designed pool that aligns with the project's overall design, meeting safety standards for swimming, and featuring a children's area for family activities with safety in mind.

2.4. Co-working space: An area suitable for residents' lifestyles, such as working, reading, or holding meetings.

3. Incorporate technology into the development of amenities and services to align with buyers' needs.

Today, technology plays an increasingly significant role in people's daily lives, especially clean energy technology, which is emerging globally, including in Thailand. Therefore, developing townhome housing must integrate technology into the development of amenities and services to meet the needs and behaviors of buyers. The SDC team found that current homebuyers, including those purchasing townhomes, desire amenities and services related to technology, such as:

3.1. EV Charger: An EV charging system provided with the home to support electric vehicle usage. According to LWS data from 2017-2023, there were 33,000 electric vehicles in Thailand by 2022, with projections for 2023 to reach 120,000, a market growth of 2.5 times. As of 2023, there are only 1,650 EV charging stations nationwide, expected to increase to 2,400 by 2025. Given that most electric vehicle users charge at home, having an EV charger is an essential consideration.

3.2. Home Automation System: A system that controls household appliances via the internet, facilitating management and security of the home, acting as a caretaker when the home is unoccupied. According to We Are Social's 2022 data, there are 2.6 million internet-connected home automation devices in Thailand, growing 11.9% from 2021, with a continuous upward trend. This reflects consumer demand that aligns with current real estate development trends.

3.3. Solar Cell System: Helps reduce electricity costs in an era of rising energy prices. Solar cell systems are increasingly seen in current developments. According to SCB EIC data, solar panel prices are expected to decrease by nearly 20% over the next three years, following a 60% drop over the past six years. Additionally, the payback period for these systems is now just 6-8 years. These factors contribute positively, making solar cell systems a distinctive feature in townhome offerings.

3.4. Services through Applications: Developers are increasingly focusing on providing comprehensive service contact points during and after sales through developed applications, including functions for registering visitors to enhance convenience and control security from external contacts.

All three factors contribute to developing townhome projects into more than just residential buildings but into places that are “livable”, giving meaning to home living beyond mere habitation. Interested parties can find more details at www.lws.co.th.

See you again in 2024!

By: Prabhan Sak Raksaiwan, Managing Director of LWS Wisdom and Solutions Co., Ltd.