Locations for low-cost housing set to be finalised
Locations for new low-cost housing projects will be announced next week, says the Treasury Department.
Published: 24/10/2015 at 01:03 AM
Writer: Wichit Chantanusornsiri
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"By then we'll have finalised which plots will be used for low-cost housing projects, and once we have the locations and development concept, we'll survey demand among our target group," director-general Chakkrit Parapuntakul said.
The scheme is an initiative to build housing for low-income earners as part of state efforts to improve their living standards.
Mr Chakkrit said the crucial part of this type of project was finding locations that would cut commuting costs via mass transport. "We need to develop projects on state land convenient for public transport. For low-income earners, commuting is a significant fixed expense."
Deputy Prime Minister Somkid Jatusripitak previously said the government would soon introduce tax incentives for property developers, allowing them to deduct expenses incurred from building homes for the poor from their taxable profits.
Construction costs for homes valued at no more than 500,000 baht would be eligible for the deduction.
The Treasury will rent out state land to the developers to build projects under a 30-year leasehold contract with a one-time lump-sum payment of not more than 500,000 baht, depending on construction costs.
"Don't worry about rental rates. If the construction is relatively high, we're ready to lower the rate to make sure the cost of a house does not exceed 500,000 baht," Mr Chakkrit said.
The government also wants to encourage private property developers to use funds from their corporate social responsibility programmes for the projects.
Mr Chakkrit said apart from private companies, the state-owned National Housing Authority and the Treasury Department's property development arm were also eligible to join the scheme.
The Finance Ministry will take responsibility for seeking land banks, while developers will absorb the construction costs.
However, Atip Bijanonda, director of the Board of Trade's Construction and Property Business Group Association, said if the government was set on pushing the project ahead, it must ease environmental impact assessment criteria.
Locations for low-cost housing set to be finalisedLocations for new low-cost housing projects will be announced next week, says the Treasury Department.Published: 24/10/2015 at 01:03 AMWriter: Wichit Chantanusornsiri Share on Google+ LINE it!"By then we'll have finalised which plots will be used for low-cost housing projects, and once we have the locations and development concept, we'll survey demand among our target group," director-general Chakkrit Parapuntakul said.The scheme is an initiative to build housing for low-income earners as part of state efforts to improve their living standards.Mr Chakkrit said the crucial part of this type of project was finding locations that would cut commuting costs via mass transport. "We need to develop projects on state land convenient for public transport. For low-income earners, commuting is a significant fixed expense."Deputy Prime Minister Somkid Jatusripitak previously said the government would soon introduce tax incentives for property developers, allowing them to deduct expenses incurred from building homes for the poor from their taxable profits.Construction costs for homes valued at no more than 500,000 baht would be eligible for the deduction.The Treasury will rent out state land to the developers to build projects under a 30-year leasehold contract with a one-time lump-sum payment of not more than 500,000 baht, depending on construction costs.
"Don't worry about rental rates. If the construction is relatively high, we're ready to lower the rate to make sure the cost of a house does not exceed 500,000 baht," Mr Chakkrit said.
The government also wants to encourage private property developers to use funds from their corporate social responsibility programmes for the projects.
Mr Chakkrit said apart from private companies, the state-owned National Housing Authority and the Treasury Department's property development arm were also eligible to join the scheme.
The Finance Ministry will take responsibility for seeking land banks, while developers will absorb the construction costs.
However, Atip Bijanonda, director of the Board of Trade's Construction and Property Business Group Association, said if the government was set on pushing the project ahead, it must ease environmental impact assessment criteria.
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