Recent changes to Phuket’s building regulations, which took effect on December 14th, 2024, have created new possibilities for hillside development across the island. A Cabinet decision has repealed the longstanding restriction on construction above 80 metres, allowing developments in designated areas up to 140 metres above sea level. This move is expected to create significant opportunities for landowners and developers while raising questions about its broader implications for the island’s environment, economy, and infrastructure.
Key Changes and Regulations for Phuket Land at Altitudes from 80 to 140 Metres
The new rules apply to “Zone 6,” which covers the majority of the island but excludes sensitive and densely populated areas. Coastal regions, the protected Nakkerd Range, and urban hubs like Phuket Town remain off-limits to ensure conservation and to avoid urban sprawl.
Buildings permitted in these zones must comply with strict criteria to minimise environmental impact and ensure sustainable development:
1. Land Titles: Eligibility for construction requires land title deeds to have been issued before 2017.
2. Building Restrictions: Only single structures are allowed, with developments such as resorts or multi-structure villas prohibited.
3. Height and Area Limits: Structures must not exceed six metres in height and are restricted to 90 square metres of covered area.
4. Green Space Requirements: At least 70% of the land plot must remain undeveloped and designated as green space, with half of this area planted with trees and left unpaved.
5. Environmental Impact Assessments: All projects must undergo assessments to evaluate risks such as landslides, flooding, and erosion.
6. Low-Density Development: Adjacent buildings are not allowed to ensure low-density construction.
7. Approval Requirements: All projects require approval from the Phuket Provincial Office of the Department of Public Works and Town & Country Planning, which evaluates compliance with these regulations.
While these rules aim to balance development potential with environmental stewardship, officials have emphasised that meeting basic requirements does not guarantee approval. Additional reviews consider the specific context of each site, further ensuring responsible development.
Comparing These New Regulations in Phuket to Equivalent Ones for Koh Samui
Although the new regulations bring Phuket more in line with Koh Samui, where construction at altitudes of 80 to 140 metres has long been permitted, notable differences remain.
For Koh Samui, regulations at these elevations include:
1. Construction is only allowed on plots of at least 100 square wah (approximately 400 sqm).
2. Structures cannot exceed six metres in height and must leave 50% of the land as unbuilt green space.
3. Building designs must adhere to traditional Thai, tropical, or local aesthetics.
4. Roofs must cover 80% of the total building area and harmonise with the natural surroundings.
5. An approved water drainage system is mandatory to mitigate flooding risks.
While Phuket’s rules also focus on limiting building heights, green space preservation, and environmental impact assessments, Koh Samui’s regulations reflect a stronger emphasis on architectural aesthetics and water management. Phuket’s requirement that 70% of the land plot remains undeveloped surpasses Koh Samui’s 50% rule, highlighting a stricter approach to preserving green space.
These differences underline how each island adjusts its development guidelines to its unique geography and character, with Phuket prioritising natural land preservation and Koh Samui focusing more on blending developments with the environment.
Likely Effects on Phuket Real Estate
The lifting of the restriction is already having a noticeable impact on Phuket’s property market. High-altitude areas, particularly in Patong, are seeing land values surge, with some plots now priced between 150 and 200 million baht. Less central areas are also benefitting, with demand driving prices to 6–8 million baht depending on location and accessibility.
Phuket’s luxury real estate sector is poised to gain the most from these changes, as elevated locations are ideal for exclusive resorts, high-end villas, and premium residential projects. These developments often offer sweeping views and a sense of seclusion, which are highly sought after by affluent buyers and investors.
However, the broader market implications are worth considering. While demand for newly buildable areas is surging, the larger supply of land now available for development could dampen prices in areas that were already permissible for construction. From a general economic perspective, increased supply typically puts downward pressure on prices. Yet, it’s essential to remember that Phuket is an island with a finite supply of desirable sea-view land, particularly in prime locations. This inherent scarcity could limit any dampening effect on prices and may sustain the premium value of existing buildable areas.
Concerns also remain about ensuring compliance with the new regulations. Authorities will need to carefully monitor projects to ensure adherence to green space requirements, slope protections, and other safeguards. Without proper oversight, there is a risk that unscrupulous developers could harm the delicate balance between development and conservation.
Environmental and Safety Concerns
While the new rules present exciting opportunities, the environmental risks cannot be ignored. Phuket’s hillsides are particularly susceptible to landslides, erosion, and flooding, all of which could be exacerbated by large-scale construction. Increased runoff from impervious surfaces may not only destabilise slopes but also impact nearby ecosystems and waterways.
To address these concerns, officials have emphasised the importance of incorporating slope protection measures into all new developments. These measures include proper drainage systems and vegetation reinforcements, which can mitigate the risks associated with hillside construction. Developers are encouraged to view these safeguards as long-term investments in the safety and sustainability of their projects, rather than burdensome costs.
In addition to environmental considerations, critics warn against overdevelopment’s potential to diminish the island’s natural charm. Phuket’s landscapes play a crucial role in attracting both tourists and investors. Any degradation of this appeal could have long-term economic repercussions.
A Balancing Act
The revised regulations reflect an effort to address the grievances of landowners who were previously restricted from utilising their high-altitude plots, while still imposing safeguards to protect the island’s natural resources. By opening up more land for development under strict conditions, the authorities aim to stimulate economic activity without compromising environmental integrity.
However, successful implementation depends on enforcement. Local officials will need to remain vigilant to ensure that the new rules are followed. This includes monitoring the adherence to green space quotas, preventing unauthorised structures, and addressing any environmental damage caused by construction.
Looking forward, the future of hillside development in Phuket hinges on achieving a delicate balance. If managed responsibly, the changes could position the island as a leader in sustainable luxury development, providing economic benefits while preserving the unique characteristics that make Phuket a world-renowned destination.
