Govt’s ‘Homes for Thais’ will only benefit a few: real-estate expert
The 100 million baht offered for the State Railway of Thailand’s plots is far less than the authority stands to earn over the 99 years it is leased for, he said
A real estate expert has criticised the government's “Baan Pheu Khon Thai” (Homes for Thais) project, saying it is unnecessary and potentially harmful to the State Railway of Thailand (SRT). He also reckoned it would only benefit a select few.
The project aims to offer fully furnished condos or houses near urban centres on SRT land, with mortgage payments starting at around 4,000 baht per month under a 99-year leasehold.
Sopon Pornchokchai, president of the Thai Appraisal and Estate Agents Foundation, said on Thursday that the four proposed pilot areas – Chatuchak and Thonburi in Bangkok, Chiang Rak in Pathum Thani and Muang district in Chiang Mai – already have plenty of properties for sale.
Sopon, also chair of the Agency for Real Estate Affairs Ltd, cited the Chatuchak project located at Nikhom Rot Fai KM11 on Vibhavadi-Rangsit Road as an example. He pointed out that private developers are already offering over 1,100 condo units priced between 1.46 and 3.04 million baht.
“The proposed plan for Chatuchak will see 1,232 units, priced between 1.76 and 3 million baht, which is roughly the same as those offered by private developers,” he said, adding that this project is unlikely to add value to the area.
He also slammed the proposed rental fee arrangement with SRT, with the four projects expected to pay the SRT a one-time fee of 100 million baht. He argued that this was significantly undervalued and would rob the SRT of its deserved financial gains.
“The SRT plots in Bangkok, Pathum Thani and Chiang Mai could earn at least 1.63 billion baht in rent over 99 years. Reducing this to just 100 million baht would severely affect the SRT’s finances in the long term,” Sopon warned.
Additionally, Sopon claimed the project’s construction costs could lead to financial losses. For instance, he said, building a condo unit in the Chatuchak project could cost up to 3.15 million baht. But if these units are sold at an average price of 2.36 million baht, then the government will be selling the units at a loss.
“This project will only benefit a few lucky individuals, who can buy and resell the units after five years, while the broader public will see no tangible results,” Sopon said, adding that such a scheme could create an unfair situation and strain the SRT’s finances in the long term.
