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Developers Open to Govt Plan for Low-cost Housing

By on Nov 06, 2015 in Property News, Residential

Property developers are interested in developing low-cost residential projects following the Finance Ministry’s policy to support a policy for long-term land lease to help develop residences nationwide priced not higher than Bt600,000 per unit.

“We are interested, but we have to do a feasibility study on whether we can build residences costing lower than Bt600,000 per unit. If we can, we will,” Pruksa Real Estate chief executive officer Thongma Vijitpongpun told The Nation.

On October 16, Deputy Prime Minister Somkid Jatusripitak and Finance Minister Apisak Tantivorawong met with property developers and urged them to build low-cost residences. Under this policy, the government will offer land for the projects, which will help property firms cut their land cost.

Thongma said the offer from the government will be a challenge for property developers, because when land cost is eliminated, it may be possible to build a home for less than Bt600,000.

However, the company has to study the location and market demand before investing in the project, he said.

Property Perfect chief executive officer Chainid Adhyanasakul said the company would welcome participation in the development of low-priced homes for low-income customers under the concept of social-enterprise business.

“We would be ready to develop one or two projects under this concept, but we have to wait and see the details of the project first. It could commence next year,” he said.

Treasury Department director-general Chakkrit Parapuntakul said the department has short-listed state-owned land plots covering about 20,000 rai for the development of low-income housing projects.

The land is located across the country, but no land plot is in Bangkok.

Chakkrit said that the department is assessing the potential of the land plots in terms of housing/commercial development as well as public utilisation. Discussions with developers would follow, he said.

Private property firms and the Finance Ministry officials will meet again in the middle of this month to decide whether the project will go on or not.

Source: The Nation – 6 November 2015

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