Bangkok's new zoning law aiming to reduce city density isunlikely to materially reduce condominium developmentopportunities in the capital and could be positive fordevelopers that tapped into less stringent zones, Citigroupsaid.
Bangkok's existing city plan is due to expire in May 2013.The broker said it maintained a positive view on Thaicondominium sector.
"While condo development in small-sub roads in high densityareas will be more difficult, we see more business opportunityin low/mid density areas," it said in a report.
"The new plan could add value to land plots that are locatedalong mass transit lines given less stringent regulatoryrequirements," it said.
For instance, the new plan that aimed to remove all frontageroad requirements versus previous requirements of 6-10 metrewide of frontage road, was positive for mid-range and high-enddevelopers such as Land and Houses , Quality Houses, Asian Property Development and Supalai, it said.
LPN Development could also benefit as there wouldbe more areas opening for development in the suburbs whiledevelopers that had scaled down condo development, like PruksaReal Estate , were likely to miss long-term growthopportunity, it said.
The broader property subindex edged down 0.17percent amid weak market sentiment. The benchmark SET index was down 0.09 percent. 1209 (0509 GMT) (Reporting by Viparat Jantraprap in Bangkok;firstname.lastname@example.org)($1 = 30.655 baht)(Editing by G.Ram Mohan)
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