Property in Thailand set to see good growth in 2012 despite regulations
Property experts believe that property in Thailand will see good price growth in 2012 despite the sector being ‘hampered by regulations’. While the property market in the Asian country is healthy, many Thai property specialists believe that growth would be higher were it not for new city plans.
Keep reading to learn about the prospects for the Thailand property market in 2012.
Thai property market set to grow by over 5 per cent in 2012
According to predictions from the Thailand Finance Ministry, the property market in the country will grow 5.2 per cent in 2012. This is broadly in line with the general economy, with overall GDP growth expected to be 5.5 per cent.
However, regulations in the sector may hamper growth in the property market. According to the Bangkok Post Thongchai Busrapan, president of Noble Development Plc, has expressed concerns that regulations, down payments, and price supports will hamper growth in an otherwise healthy market.
Many of Thailand’s top developers believe a new US style city plan will reduce urban density. The newspaper 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 1:15 ratio means one square metre of land can have 15 square metres of building on it.
Mr Thongchai recently told a property seminar: “Thailand should have superblocks or more flexible FAR zoning, with higher FAR near public transportation to attract property development.”
Thongchai suggested that FAR rights should be transferable in order that a high-rise project developer could buy FAR from a nearby development with additional FAR.
Another area that concerns developers is the proposal to prevent buildings higher than 23m being constructed on roads less than 16m wide. As many of Bangkok's roads are narrower than this, the restriction would prevent high-rise development and affect land prices in the city.
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