BANGKOK – As the Thai Baht continues it’s upward climb, tourism and exports are struggling, Thailand’s government low cost housing scheme is failing, causing developers to stall projects.
The Junta government Pracharath Thai housing scheme, invited the private sector to develop residential projects targeting individuals with an annual income of 100,000 baht or less.
Tenants would lease residential units built on state land.
For unoccupied units, those earning up to 35,000 baht a month would be allowed to lease them before they would be offered to the general public.
According to the Bangkok Post, nearly 80% of loan applications for the State-owned Government Savings Bank low-cost housing scheme have been rejected.
A source at the Treasury department said the department will talk with the Bank of Thailand about easing financial institution’s lending requirements for the low-cost housing scheme.
GH Bank president Chatchai Sirilai earlier said that most loan applicants to buy the cheap homes cannot afford the minimum payment.
GH Bank and the Government Savings Bank are lenders for the Pracharath Thai housing scheme.
He said the new government could help low-income earners by loosening lending criteria and subsidizing some interest costs to make home purchases affordable.
Among the aspects of the Pracharath Thai scheme, a project in Chiang Rai province is expected to receive a warm welcome from buyers, given the good location and low construction costs.
Projects in Chon Buri and Nakhon Phanom have failed to attract auction participants because construction costs are expensive, particularly in Chon Buri, where soil to fill land costs as high as 1 million baht per rai.