In 2018, the Treasury Department will start to develop property projects on lands owned by the state. The project will cost 90 billion baht and low income earners will no longer have to buy single house in Pinklao because it includes housing for minimum salary workers.
Patchara Anantasilp, the director general, said that majority of the projects have been postponed but contracts will be signed in collaboration with private sectors soon.
Aside from affordable residential properties, there are several projects such as land development in Charoen Krung Soi and Mor Chit, government complex to be constructed in Chaeng Wattana at the Zone C, Eastern Economic Corridor projects as well as Queen Sirikit National Convention Centre.
There will be eight provinces where the housing projects will be constructed using state land and it will include Chon Buri, Bangkok and Chian Mai. Starting January of next year, the construction of 2,600 units will commence.
Every unit will have a total land area of 28 square meters and will be available for rent within 30 years. The lump sum will be between 350,000 and 450,000 baht. With that amount, the monthly instalment will not be over 2,000 baht.
The target customers of the housing projects are those individuals belonging in the low-income sector and have been registered in the government. Post-financing will be made possible by the Government Savings Bank.
Praharat projects are collaboration between the government and private corporations. This means that companies will be contracted for the construction work. In exchange, incentives will be provided such as very low profit margins in the range of 15 and 20 per cent.
In case of land rental, the department will make some changes with the rentals in order to complement the current prices on the market which is determined by the return of assets. The revised rates will only be imposed on contracts that are new or have been renewed.
The main income of the department is coming from land development, coin production as well as property rentals. This new housing project will help locals instead of buying a single house in Pinklao which might be beyond their income capacity.