Construction of low-rise buildings on smaller streets in Nonthaburi has been banned as part of a new city plan aimed at improving the take up of existing condo supply along the Purple Line, local media reports. The Purple Line connects Nonthaburi and Bangkok and currently there is an oversupply of condo units surrounding it.
The new city plan calls for a ban on low-rise residential buildings at land plots located on roads narrower than 8 metres and situated further than half a kilometre from a mass transit station. The former rules allowed for low-rise housing to be built on roads at least 6 metres or wider regardless of their proximity to a mass transit station.
“The local government of Nonthaburi wants to make the city well-organised to keep with the city’s fast growth, driven by the development of mass transit lines and new transportation routes,” says Nonthaburi Real Estate Association President Lertmongkol Waravenuch to the Bangkok Post.
In terms of condos launched in 2016, the Purple Line was the 3rd most popular location. A total of 6 projects and 4,790 units were launched along the transit line last year, according to market research from LPN Development Plc. The research also showed that the sales rate at this location was down by nearly 20 per cent from 2015 figures.
One reason for the high amount of condo supply currently available on the market is due to the increase in mortgage application rejections from banks. A number of projects that had units booked could not be to transferred to customers. It was also noted that the Purple Line has not been as well received by people as hoped.
“Despite that, some projects had a sales rate of up to 80 per cent, they could transfer only less than half as customers failed to get a mortgage loan approval. The mass transit fare for those living near the line and working in the city remains high,” says Lertmongkol.
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