A lower plot ratio in the central business district will restrict the scale of future luxury projects, pushing values higher
Prices for luxury condominiums in Bangkok's CBD are expected to rise as the government plans to introduce new zoning regulations next year, according to international property consultants.
The new rules will lower the plot ratio of developments in the business areas and are aimed at improving city planning. This could result in a decrease in new supply, forcing prices to go up, they said.
'In the centre of Bangkok the new regulation will lower [the] plot ratio in various areas,' said Aliwassa Pathnadabutr managing director of CB Richard Ellis (CBRE), Thailand.
The new rules are expected to be enforced early next year.
The luxury condominium market experienced a comeback in 2002 - five years after the Asian economic crisis. High-quality condominium projects in Bangkok's prime locations have recorded 20 per cent to 30 per cent capital gains over the past three years, with an average 6 per cent rental return.