The Treasury Department has selected 76 state land plots with a combined area of 5,000 rai including four rai in Bangkok to develop into low-priced housing.
Almost all the potential plots are located upcountry, director-general Chakkrit Parapantakul said.
The proposed land in Bangkok was once the site of the Express Transportation Organization of Thailand in Chatuchak district.
He said there were eight or nine other plots in Greater Bangkok outside the city.
The proposed areas, picked from 500 plots, are under consideration by the Finance Ministry and the Fiscal Policy Office (FPO), Mr Chakkrit said.
He said his department had already proposed the potential areas, which were pending FPO consideration of the project details and lease contract.
The low-cost housing scheme is meant to allow low-income earners to afford a 30-year lease on homes costing 500,000 baht or less.
The government plans to approach private property developers to invest in the projects under their corporate social responsibility schemes.
Deputy Prime Minister Prawit Wongsuwon said the government would earmark 100 billion baht to build more than 100,000 low-priced homes for low-income families in the next three years.
Mr Chakkrit said his department planned to charge property developers 50 satang per wah per year or 200 baht a rai to lease state lands in Bangkok and 25 satang per wah per year or 100 baht a rai upcountry. The lease period is 30 years but could be extended to 50 or 90 years if the law is amended.
The low lease amount will allow the project to be economically viable, as land typically accounts for 30-50% of a project's value.
The proposed land plots have been classified into three grades -- Grade A has the highest potential for development, Grade B is pending handover from other state agencies, and Grade C is the least ready.
Mr Chakkrit believes development of Grade B land will not be a problem, as the cheap-home project is a government policy and the land unused. The department plans to offer a renewal option, and leases are transferable.
The Treasury Department will also accelerate two development projects in Bangkok's Mor Chit and Makkasan areas.
Meanwhile, starting today the Treasury Department will issue commemorative coins on the occasion of the International Union of Soil Sciences presenting His Majesty the King with its Humanitarian Soil Scientist award.