One of the most significant changes to Phuket’s real estate sector this year is the repeal of the 80-meter development height limit.

In a recent Government Gazette, the Thai Cabinet approved a re-zoning proposal by the Minister of Natural Resources and Environment, which now allows development in Zone 6 of Phuket to extend up to 140 meters.

This decision effectively paves the way for development on land above the previously restricted 80-meter mark in Phuket.

Impact on the Market

The lifting of this restriction will have an immediate effect on projects that have undeveloped land located above 80 meters. The value of these properties is expected to rise significantly as they become eligible for new development opportunities.

The change also benefits luxury hotels and housing estates that own land in higher elevations. With the ability to expand and link their properties to existing infrastructure, these developers can now explore more extensive projects.

Concerns and Challenges

However, there are key concerns that need to be addressed. The development of Phuket’s hillsides raises issues such as potential landslides, flooding, and increased runoff, which could have significant environmental impacts. These risks need careful management to ensure sustainable development.

Looking Ahead: The Phuket City Plan and Future Changes

Looking toward 2025, the impact of this regulatory change will be further influenced by the new Phuket City Plan, currently being developed by the Department of Works and Town & Country Planning. This new plan will replace the existing zoning regulations for the entire island and could include significant shifts in how land is used.

There is speculation that the new zoning system may adopt a Floor Area Ratio (FAR) system, similar to that of Bangkok. This would set limits on the amount of floor space allowed on certain plots of land. Additionally, some high-density areas on the island may be designated for buildings with a height limit of 60 meters.