RESAM calls for new city plan to end mandatory parking for condos near rail stations

The Real Estate Sales and Marketing Association, or RESAM, is urging Bangkok authorities to revise the new city plan by ending mandatory parking requirements for condominium projects located near electric train stations, saying the move could help reduce urban housing prices.

Although the draft Bangkok comprehensive city plan, in its latest revised version, allows the private sector to use land more flexibly and efficiently, the property sector believes one proposal still requires further review: the requirement for 100% parking allocation in buildings, especially condominium projects located within the service radius of mass-transit stations.

The proposal is intended to encourage both Thais and foreigners to use public transport as their main travel option, increasing the value of state investment in mass-transit infrastructure. At the same time, it could lower project development costs for developers, which would be reflected in more affordable housing prices for the public.

However, the proposal should be implemented alongside state investment in sufficient and comprehensive suburban Park & Ride facilities to support private-car users and connect them efficiently to the public transport system.

Wasan Kongchan, managing director of Modern Property Consultant Co Ltd and president of RESAM, told Thansettakij that the association had repeatedly proposed to the Bangkok Metropolitan Administration that mandatory parking requirements for buildings, particularly inner-city condominium projects within 500-metre and 800-metre radiuses of electric train stations, should be removed.

He said the aim was to encourage more people to travel by electric train, maximise the benefits of mass-transit investment, reduce air pollution and address traffic congestion sustainably.

At the same time, the state should provide enough Park & Ride facilities in suburban areas. These could be developed either through private-sector bidding or direct state investment.

Wasan said the key benefit of scrapping parking requirements in condominium projects would be lower costs for developers, allowing consumers to access housing near employment centres in the inner city more easily.

He estimated that housing prices could fall by 30-40%. When combined with the 20% bonus allowing increased construction and saleable floor area under the city plan, housing prices could fall by up to 50%.

For example, a condominium with parking that is currently priced at 100,000 baht per square metre could see its selling price fall to around 50,000 baht per square metre if parking is not required and the project receives the additional development bonus.

He explained that costs would fall because buildings are currently required to provide parking areas, causing developers to lose commercially saleable space.

Wasan said foreigners living in Thailand, especially in central business districts, generally prefer travelling by electric train.

He added that if the private sector is no longer required to provide parking, it would create opportunities for both developers and buyers. Similarly, if the government develops land along mass-transit lines without requiring parking, people would also be able to rent homes in the city at lower prices, creating economic value for the country.

However, although the Bangkok Metropolitan Administration has acknowledged the association’s proposal, it has said the reduction should be gradual. It has therefore allowed parking requirements in projects to be reduced by 25%. For instance, if a project was previously required to provide parking for 100 cars, the requirement would be reduced to 75 cars.

Wasan said RESAM believes the private sector should not be forced to provide parking.

He said the association still hopes that before the 90-day public notification period begins in August, the Bangkok Metropolitan Administration under Governor Chadchart Sittipunt will reconsider the issue, as it would benefit the public.

He added that the association had already raised this proposal during the earlier 15-day public notification period.

Source: Thansettakij