On June 18, 2019, Mr. Amnuay Preemnuang, Director-General of the Treasury Department, announced after signing an agreement with the Government Housing Bank (GHB) and the Government Savings Bank to provide loans for the Thai People's Housing Project on 8 plots of state land across 4 regions of the country. Currently, the Treasury Department has conducted bidding to find investors for the construction and management of the project, and has granted development rights on state land, with lease agreements finalized for 5 areas. Four areas have already opened for reservations, including Chonburi, Prachuap Khiri Khan, Chiang Mai, and Chiang Rai, with 2,249 reservations made, accounting for 98% of the total 2,302 units available. This high level of interest is due to the housing being aimed at low-income individuals with state welfare cards, with house prices ranging from 350,000 to 700,000 Baht.

           Currently, construction has begun on one site on state land in Prachuap Khiri Khan, and in the 2019 fiscal year, bidding will be opened to find investors in Nakhon Phanom, with bids due on June 25.

           Phase 2 of the project will begin with public consultations on demand in 2020, with construction expected to start the following year. Initially, 8 provinces have been selected for development, including Bangkok, Phra Nakhon Si Ayutthaya, Kamphaeng Phet, Songkhla, Phang Nga, and Sisaket.

           Mr. Chatchai Sirilai, Managing Director of GHB, stated that GHB is ready to support the project with low-interest loans in collaboration with the Government Savings Bank, under a budget of 4 billion Baht for tenants on state land. This includes: 1. Pre-Finance loans for housing project development with a relaxed interest rate of 3% per year for the first 1-3 years, and from the 4th to 30th year, an interest rate of MLR minus no more than 1% per year (currently, GHB's MLR rate is 6.25% per year) with a repayment period of no more than 5 years for borrowers intending to develop housing projects under the Thai People's Housing Project.

           2. Post-Finance loans for housing with a relaxed interest rate of 2.75% per year for the first 1-4 years, and from the 4th year for the duration of the loan contract, with MRR minus 0.75% per year for retail customers and MRR minus 1% per year for salary deduction welfare customers (currently, GHB's MRR rate is 6.75% per year). This loan is for purchasing housing on state land under the Thai People's Housing Project, priced between 350,000 and 700,000 Baht per unit, with a maximum repayment period of 30 years. Eligible participants can apply for loans and negotiate with the bank from now until January 2, 2023.

           Mr. Chatichai Payuhnaweecha, Director of the Government Savings Bank, revealed that the bank is currently considering loans for the Thai People's Housing Project for 3 operators in 5 areas: Chonburi, Prachuap Khiri Khan, Chiang Mai, Chiang Rai, and Khon Kaen. The construction will consist of residential buildings (condominiums) and single-story twin houses, with a total project value of 1,564 million Baht, expected to construct approximately 2,302 units. There are 4,953 interested parties, with 2,210 reservations made, including 512 from the state welfare group, 1,674 from individuals earning no more than 35,000 Baht per month, and 5 from the general public.

           “The Thai People's Housing Project targets three groups: low-income individuals under the state welfare program, individuals earning no more than 35,000 Baht per month, and the general public, with a relaxed interest rate. For example, if one borrows 700,000 Baht, the monthly payment for the first 4 years will be 3,300 Baht, and from the 5th to the 30th year, it will be approximately 4,400-4,500 Baht per month. If borrowing 350,000 Baht, the monthly payment for the first 4 years will be 1,700 Baht, and from the 5th to the 30th year, it will be 2,300 Baht per month,” Mr. Chatichai stated.

           The Treasury Department has specified that the construction of the Thai People's Housing Project will consist of three types of housing: twin houses with a usable area of no less than 28 square meters, row houses with a usable area of no less than 28 square meters, and residential condominiums with a usable area of no less than 28 square meters.

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