It has been concluded that the Palang Pracharat Party, led by General Prayuth Chan-o-cha, has won the votes to secure the position of Prime Minister for a second term. Today, we will look back at the policies of the Palang Pracharat Party that were used during the election campaign. Primarily, the party campaigned with three key policies: 1. Increasing agricultural product prices, 2. Raising wages, and 3. Welfare.

 

Of course, if anyone remembers, the welfare policies of the Palang Pracharat Party include various aspects related to welfare. However, coordinating the different policy directions among coalition parties will be another significant challenge, as each party has different policies during the election campaign. Many measures from various political parties in the coalition still require a large budget and are likely to be ongoing commitments, such as price guarantees for agricultural products or income guarantees for farmers, maternity benefits, and support for young children, including the Million Houses Project.

 

Today, we will explore the details of the housing-related policy, the Million Houses Project of the second term of the Prayuth government, which is another "immediate action" policy of the Palang Pracharat Party, and how interested individuals can participate.

 

 

The Million Houses Project Phase 2 is set to move forward this September, with adjusted conditions to assist low-income earners, extending the loan period to 50 years. It is expected that the lowest monthly payment will start at 2,800 baht.

As of March 20, 2019, Deputy Prime Minister Somkid Jatusripitak announced that he has instructed the Government Housing Bank (GHB) to implement the Million Houses Project Phase 2 by September 2019 to expand opportunities for low-income earners who were unable to apply for loans in the first round, especially those who support their parents to have their own housing. Special incentives will be provided before expanding to other groups.


         He requested that GHB extend the loan period to a maximum of 50 years from the previous 40 years to help low-income earners access low-interest loans and reduce monthly payments to below 3,800 baht, as many applicants were denied loans. For the first phase of the Million Houses Project, GHB has expedited loan disbursement to 127,000 applicants to be completed by June.

 

          GHB Managing Director Chatchai Sirilai stated that the Million Houses Project Phase 2, expected to start in September, has a budget of 80,000-100,000 million baht for low-income earners with monthly incomes below 15,000 baht or up to 25,000 baht or those with incomes exceeding 25,000 baht who wish to purchase housing priced at no more than 1 million baht.

          GHB will discuss with the Ministry of Finance to adjust various conditions according to Somkid's policy, including extending the loan period to 50 years, reducing monthly payments to 3,000 baht, or if the government compensates with a budget of 2,400 million baht, it will help reduce the monthly housing payment to just 2,800 baht. They will also consider relaxing conditions to allow those with incomes not exceeding 15,000 baht per month, caregivers, and young workers to access housing loans. GHB is ready to subsidize the burden for six years without needing compensation from the government, with an initial interest rate expected to be no more than 3% per year. Additionally, special benefits will be provided to those who support their parents, with incentives such as a bonus to reduce the principal if payments are made for three years, reducing the principal by 500 baht per month for 36 months.

 

For the Million Houses Project Phase 2, aimed at dutiful children, it will be divided into two parts:

1. Citizens who reserved rights for their first house totaling 127,000 individuals, if they support their parents, will receive a lower special interest rate or extended loan periods and reduced principal, etc. The Ministry of Finance will be requested to reimburse GHB after GHB has made advance payments regarding interest reductions for citizens, although it is currently unknown how many applicants will qualify for the special interest rate.

 

2. Citizens with monthly incomes below 15,000 baht GHB will consider reducing interest rates as a special case. GHB will issue new GHB lottery tickets to raise funds and use the proceeds to manage interest costs for this project. This method results in lower costs than raising funds through public deposits, allowing borrowers to have interest rates lower than 3% per year. Additionally, applicants who bring their parents to live in the houses under the Million Houses Project will receive additional benefits, such as reduced interest rates and lower principal amounts. GHB will request a subsidy from the Ministry of Finance of another 2,400 million baht to allocate to citizens receiving loans from GHB, providing an additional 1,000 baht per month for five years to help repay the loans, and will request the Ministry of Finance to extend the repayment period from the previous maximum of 40 years to a maximum of 50 years.

 

The Million Houses Project is another initiative from the first Prayuth government to promote home ownership among Thais across Bangkok and other provinces. Phase 2 aims to expand the Million Houses Project to reach more citizens by involving large and small private sectors to help build houses priced at no more than 1 million baht nationwide. The houses must be of quality or designed freely or use new construction materials in line with government policies. The government has assigned the BOI to consider promoting the private sector to build houses by providing tax incentives. If small businesses participate in house construction, it will also boost related industries such as furniture, decorations, construction materials, etc. Therefore, it is essential to encourage more private sector involvement in the project.

Previously, Mr. Somkid stated that after the election, he wanted GHB to prepare funds to continue the Million Houses Project Phase 2 through GHB lottery issuance or infrastructure funds, encouraging the elderly and citizens to deposit money with GHB due to higher interest rates. It is believed that after the election, citizens will be looking for good places to deposit their money.

For those preparing to buy a house within a budget of 1 million baht, if you are not in a hurry, it would be wise to wait for the Million Houses Project Phase 2 from the second Prayuth government, as the monthly payments are not too high, making it easier for those who dream of owning a home.