The Thai Treasury Department is ready to proceed with the development of several property projects on state-owned land next year, according to local media reports. These will include all types of projects and altogether they are estimated to be worth THB90 billion.
Most of the projects to be developed have been delayed for several years and the government is looking to sign contracts with businesses in the private sector to get them started, says Treasury Department Director-General Patchara Anantasilp to the Bangkok Post. A majority of the projects involve building housing for the country’s low-income earners.
The new housing developments will be built on land the government already has in 8 provinces around Thailand. Construction on developments in Bangkok, Chiang Mai, and Chon Buri is expected to start early next year and will add 2,600 units to existing housing supply.
The units at the new housing projects will be no smaller than 28 sq. metres and they will be rented out for 30 years for a lump sum of THB350,000 to THB450,000. This allows for affordable monthly instalments under THB2,000 per month. The Government Savings Bank is scheduled to provide post-financing for targeted buyers.
Each of the low-incoming housing developments will be Pracharat projects and the government will hire private businesses for the construction work. Several incentives are being considered since the projects only provide 15 to 20% profit margins, a relatively small figure.
In addition to housing, the Treasure Department also wants to develop several other projects in the country. It is looking at developing a 63-rai land plot it holds in Mor Chit and a 5-rai land plot on Charoen Krung Soi 36. The department is also considering developing several projects in the Eastern Economic Corridor as well as starting a new government complex in Zone C of Chaeng Wattana sometime next year.
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