Three real estate associations Monday asked government agencies to review the draft of Nonthaburi's city plan, citing new regulations that may make housing units unaffordable for lower-income earners.
Prasert Taedullayasatit, honorary president of the Thai Condominium Association, said some regulations in the draft city plan would limit property development and impede the province's growth.
"Nonthaburi is a key province that supports Bangkok's expansion," he said. "Lower-income earners can rarely afford a unit in Bangkok as land costs are high. They have shifted to outer areas like Nonthaburi, where development costs remain low."
Some new regulations in the draft that may increase development costs include wider public roads for the development of townhouses and single house projects of at least 12 and 10 metres, respectively.
However, 80-90% of roads in Nonthaburi have a width of around 6-8m. This will drive development costs upwards for townhouses and single houses.
In the green zone, where only single houses can be developed, projects will be required to have a public roads of at least 12-14m and open space to total area ratio of 1:1.
Most roads in Nonthaburi have width of 6-8m.
Two weeks ago the Thai Condominium Association, the Housing Business Association and the Thai Real Estate Association submitted a letter to government agencies, asking them to review new regulations in Nonthaburi's new city plan draft.
The government agencies included deputy prime minister Somkid Jatusripitak, the Interior Minister, the Justice Minister, the Department of Public Works and Town & Country Planning and the City Planning Commission.
"If the draft is passed, the property market in Nonthaburi will lose 30-40% or around 10-15 billion baht per year, which will impact those in the low- to middle-income segment the most," the associations noted in the letter.
They said a townhouse would cost around 6 billion baht more per year and townhouses priced between 1.5-3 million baht a unit will disappear from the market.
In the single house and townhouse segment, which is valued at 8 billion baht a year, units priced from 3-5 million baht will also cease to be developed.
The new city plan will also affect the condo market, which is valued at 4.8 billion baht a year as a units priced 1-2 million baht cannot be developed.
The associations asked the government to review the draft and amend some regulations, suggesting public roads for single house and townhouses have a minimum required width of six metres.