On Wednesday, December 20, the TerraBKK team had the opportunity to attend an in-depth analysis lecture on the “New City Plan Draft for Nonthaburi Province” presented by the Project Advisory Team of Kiatnakin Bank's Business Loan Division. This new city plan has left real estate developers and landowners in Nonthaburi shocked and distressed, as it raises several interesting issues. We will build upon the summary provided by Kiatnakin Bank regarding the content of the Nonthaburi city plan, which appears to trend towards limiting urban development.

Information from the Summary of the Project Advisory Team of Kiatnakin Bank's Business Loan Division

The draft city plan indicates that zoning remains consistent with the original city plan, with additional considerations for urban density along the electric train lines and increased areas related to industry.

However, the details of this draft city plan have undergone several changes from the original, including more detailed regulations and zoning similar to those in Bangkok. For instance, there is an emphasis on the density of areas, with the establishment of FAR (Floor Area Ratio) and specifications for road widths in various development projects for residential buildings and condominiums, as well as residential land allocation incentives through FAR bonuses.

You can read the analysis summary from Kiatnakin Bank at 

Kiatnakin Bank Analyzes the “New City Plan Draft for Nonthaburi Province” Encouraging Real Estate Developers to Adapt

The TerraBKK team believes that this draft city plan for Nonthaburi Province imposes stricter controls on development, especially residential areas. The diagonal white green zones cannot be developed for residential purposes, and certain areas designated as agricultural conservation zones (Green A.1-A.4) cannot accommodate row houses. This is a crucial aspect of controlling the expansion of low-rise residential areas, preventing them from extending beyond the suburban boundaries or green zones, which are often designated as 'urban edges' or Green Belts.

Areas Where Residential Development is Prohibited

Areas Where Residential Development of Single-Family/Duplex Homes is Prohibited

 

Areas Where Residential Development is Prohibited

According to the analysis summary of the Nonthaburi city plan by Kiatnakin Bank, it is clear that the FAR has been reduced from previous levels. Previously, areas with the highest FAR could reach 10:1, but it has now been decreased to only 8:1. Areas that were once fully developable now have restrictions regarding road size, with maximum widths reaching 30 meters.

Areas Where Residential Development is Allowed Under Conditions

In essence, most residential developments will be required to remain within the urban boundaries, with limited expansion westward. High-rise developments or multi-family housing will face increased conditions, especially for large buildings over 10,000 square meters. If located outside zones Y.7 and Y.8, they will be constrained by road size requirements, further limiting residential development.

However.. Areas within a 500-meter radius from the electric train station can receive exemptions from these conditions and can develop buildings larger than 10,000 square meters, provided they are cautious about overlapping land. Land beyond the 500-meter radius from the electric train station must adhere to road size conditions only.

With all these regulations and conditions, it turns out that the most valuable land for diverse development without restrictions is actually located in zone Y.9, not P.3. This is because land in zones P.1-P.3 still faces road size restrictions if they wish to develop large buildings.

Importantly, landowners in prohibited areas or those with road size restrictions will likely face frustration as they must wait for road expansions from the government before they can develop their land, yet they will still be subject to building size restrictions.

Nevertheless, this draft city plan for Nonthaburi has announced that stakeholders can submit requests until January 16, 2018. The nature of these requests must be for the public good only - เทอร์ร่า บีเคเค

Article by: TerraBKK Investment Tips

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