Analysts are confident that Thailand’s property market will recover in line with the general economy this year but will be hampered by regulations.
According to the Bangkok Post, the president of Noble Development Plc, Thongchai Busrapan, expressed concerns that regulations, down payments, and price supports will hamper growth in an otherwise healthy market.
Many of the country’s top developers believe the new city plan, which follows US models, will reduce urban density.
The Post reported that Thailand’s floor-area ratio (FAR) determines the size of a building compared to the land on which it is built. That means a 1:10 ratio means one square metre of land can have 10 square metres of building on it.
“Thailand should have superblocks or more flexible FAR zoning, with higher FAR near public transportation to attract property development,” Mr Thongchai told a property seminar last week.
Thongchai suggested FAR rights be transferable so that a high-rise project developer could buy FAR from a nearby development with additional FAR.
Assoc Prof Noppanan Tapananon, a city planning expert, said the plan was designed for the benefit of the city even if some developers disagreed with requirements such as road width.
According to predictions from the Finance Ministry, the property market will grow 5.2 per cent this year which correlates with overall GDP growth of 5.5 per cent.
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