No matter which field you may work in, the market is always evolving to accommodate the changing requirements of the population. The real estate market is no different. The strategies and trends of yesterday may not apply to today’s property market though and one such trend lies in mixed developments.
In the past, the demand for mixed developments was quite low, as was the chance of approval for these kinds of developments. The old way of living used to be one whereby the living residences, workplace and shopping area would be separated by large distances.
Now however, as the Baby Boomer generation heads into retirement and the more career-oriented Millennials start their own careers, the demand for cosy, cost-effective housing with essential amenities nearby, is growing.
Before we continue, let us explain these terms.
What are mixed developments?
Mixed developments or Mixed-use developments is a type of urban development that blends residential and commercial real estate in one area. A mixed development may take the form of a single building, a city block, a district or an entire neighbourhood.
Now let us look at
Why mixed developments are in high demand?
One of the most appealing aspects of a mixed development is the convenience of location to those who live there. Generally, these properties are situated in close proximity to amenities such as schools, clinics, libraries, parks and shops. These types of properties help save time and money since residents do not need to travel far to get to their homes or work area to buy what they need. Homebuyers today are looking for properties that can offer them ease of access and are well-connected.
2. Greater Exposure
Aside from cultivating a residential and commercial audience, mixed developments are able to attract immense interest and foot traffic as compared to stand-alone stores. What’s more, tenants and businesses of mixed developments are generally the ones which will benefit greatly thanks to spending from local residents as well as those working within mixed-use buildings.
3. Better Property Management
Since mixed developments comprise a blend of residential and commercial real estate, well-seasoned management services are necessary to address the different needs of the community. The benefits of good management services include better tenants, shorter vacancy cycles, better processes and improved overall support.
4. An Enriched Ecosystem
For the most part, a mixed development represents a closed ecosystem in which each sector provides for and supports each other. In this kind of ecosystem, should the value of one sector go up, the other sectors will go up as well.
A good example of a successful mixed development is Publika in Mont’ Kiara, Kuala Lumpur. The lower floors incorporate the commercial sector like the Publika mall while the upper floors comprise residential units.
Why Do We Need More Mixed Developments?
Land is a fixed resource which means we cannot create more land jsut whenever we need it. As it stands now, the availability of first-tier and second-tier land locations is going down. In other words, there is no more available land. We simply cannot afford to use the old system of having separate districts that are far apart from each other. This is where mixed developments come in. And, with mixed developments, we can make optimum use of the limited land we have available to us.
An example of a development project that makes good use of the land they have is Millerz by Exsim. Millerz is being built on just seven acres of land – yet it has luxury residences, top-tier commercial lots and a college nearby as well.
In developed countries like England, Singapore, Hong Kong and Canada, all first-tier CBD (Central Business Districts) are mixed developments. This is an unavoidable trend. Today, everyone is looking for convenience whereby one can live, work and play all in one place. Mixed developments are the way of the future, and the sooner investors join the bandwagon, the more they have to gain.
Source: Property InsightPrev. Article