Low-cost home plan outlined

Low-cost home plan outlined

Affordable housing under the 'Baan Thanarak Pracha Rat' project in Sai Mai district, Bangkok. PATTANAPONG HIRUNARD
Affordable housing under the 'Baan Thanarak Pracha Rat' project in Sai Mai district, Bangkok. PATTANAPONG HIRUNARD

The Treasury Department plans to roll out 2,000 units under the low-cost housing project this year in an effort to help low-income earners own their own homes.

The department will soon put state land in eight provinces -- Udon Thani, Chiang Mai, Chiang Rai, Khon Kaen, Lampang, Prachuap Khiri Khan, Chon Buri and Nakhon Phanom -- under auction to allow the private sector to develop homes under the Pracha Rat (People's State) housing scheme. Leases for low-income earners are for 30 years, said Amornrat Klamplob, the department's deputy director-general.

The department is drafting the low-cost housing projects' terms of reference and each plot will initially see 70% developed into residential areas, with the remaining area allotted for commercial use.

The department will charge the winning bidder twice its assistance fee, which stands at 1 baht per square wah per month for residential areas and 1% on the return on assets for commercial areas, she said.

Ms Amornrat said the 11.4 million recipients of the government's welfare and subsidy scheme are the Treasury Department's first priority for leasing the planned housing projects.

If there are residential units remaining, the department will offer the leasing rights to those earnings below 35,000 baht a month before allowing other people leases, she said.

Under the 30-year lease contract, the residential units are priced in a range of 350,000 to 700,000 baht each -- rates that allow the lessees to pay mortgages of up to 2,000 a month.

Interested people can reserve units in the low-cost housing projects within this quarter.

State-owned banks, which provide mortgages to the lessees of these projects, will charge them 2.75% for the first three years.

The projects' developers are permitted to sublet to others under the condition that subletters must manage the projects throughout the remaining period, while the transfer of lease rights is prohibited for lessees, with the exception of heirs, she said.

Commercial areas are required for the low-cost home projects as a source of income for the property developers to finance maintenance costs for common areas, she said.

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