Hassell has released a new research report arguing that the long-standing blueprint for mixed-use development across the Asia-Pacific, office towers above ground-floor retail, is no longer a reliable pathway to commercial value.

The report, titled The New Realism: How mixed-use is being redefined across the Asia-Pacific, draws on interviews with developers, investors, operators and public-sector leaders across Australia, Hong Kong, Mainland China, Singapore, Malaysia and Indonesia. It finds that fixed, large-scale urban visions are being challenged by weaker office demand, more selective capital, changing consumer expectations and the need for more resilient urban models.

Dr Daniel Davis, Hassell Head of Research, says the findings point to a fundamental disconnect between ambition and reality. "The old office-and-retail formula does not provide the certainty it once did. Developers need mixed-use models that are more resilient, more flexible and more aligned with how people actually live, work, learn and spend time," he says.

Three key findings

The report identifies three defining pressures reshaping mixed-use development across the region. First, market conditions have shifted: developers are contending with weaker office demand, more selective capital, higher operating complexity and more discerning consumers. Second, local context now outweighs global templates, with the most successful projects highly specific responses to local market, policy and community conditions. Third, government has become a critical delivery partner, particularly in Australia, where major precincts increasingly depend on government as a risk-sharer, long-term partner or anchor tenant to make projects viable.

In Australia, Hassell identifies growing momentum around health, education, housing, social infrastructure and aged living as mixed-use anchors capable of providing both public value and long-term commercial stability. Across Asian markets, healthcare, childcare, education and vocational training are increasingly being integrated into mixed-use precincts, in some cases as primary attractors and in others as part of a wider retail-led ecosystem.

Three models for a new era

The research outlines three development models for navigating the current climate. The neighbourhood ecosystem treats mixed-use as a local system that functions, trades and supports itself from day one. The civic-commercial hybrid positions government as a permanent partner or long-term tenant to reduce risk. The ready-made pivot moves away from fixed master plans toward flexible urban environments, avoiding the costly financial implications of future change.

Davis says the stakes of getting this wrong are significant. "If cities keep treating mixed-use as a retail-office equation, they miss the chance to solve more pressing urban problems like ageing populations, housing stress, access to care, lifelong learning and the need for more resilient local economies. Mixed-use is no longer a nice-to-have. We need more diverse, high-performance systems that unlock the immediate value required to anchor a long-term precinct," he says.

The full report, The New Realism: How mixed-use is being redefined across the Asia-Pacific, is available at hassellstudio.com.

Architecture & Design Team

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