Devastating rumors in Pattaya: The word on the street is that City Hall is considering implementing a ban on all new buildings over 20 floors.
This is absolutely terrible news. It is extremely bad news for land owners. As a result the land prices will drop considerably.
Projects proven to be feasible in the past will no longer be feasible. There will be fewer units with a sea view. Generally, there will be fewer units in a development. Of course a 40-storey tower can contain more units than a 20-storey tower.
Developers can expect construction permit approvals to be significantly tougher in the years to come. Due to various zoning changes we can expect plenty of EIA applications before October 2017.
This is bad for the land owners, bad for people that like high-rises, bad for the city’s skyline.
The big question: Why would city hall implement a ban on all new buildings over 20 floors? It would be bad for the economy. It would serve no purpose. Why would they want to go against the mainstream?
It doesn’t make sense!
More questions: Have the basic economic fundamentals changed? Is the economic outlook brighter this year compared to last year? Do we, as a matter of fact, find ourselves in a situation where developers are pressured into launching new projects simply because the window of opportunity is about to be closed or altered by new rules and regulations, and NOT because of market demands?
Published 24 March 2017