Bangkok Rail Project Fuels Affordable Housing Boom
Thailand is embarking on an ambitious affordable housing initiative, leveraging underutilized land owned by the State Railway of Thailand (SRT). In a significant move to address the nation’s housing needs, the SRT board recently approved a plan to lease four prime plots of land to its subsidiary, SRT Asset (SRTA). This agreement enables the construction of much-needed low-cost housing under the government’s “Home for Thais” project. SRTA will invest 5 billion baht in the development.
Deputy SRT Governor Anan Phonimdang announced the agreement, specifying the locations of the plots: a 15-rai plot in Bangkok’s Bang Sue district; an 18-rai area near Chiang Rak train station in Pathum Thani’s Khlong Luang district; a 23-rai plot near Thonburi train station in Bangkok Noi district; and a 15-rai plot near Chiang Mai train station. This geographical diversity aims to provide affordable housing options across different regions.
Funding for the initial phase is secured through a 5 billion baht loan from the Government Housing Bank (GHB). The 30-year lease agreement between SRT and SRTA, with an option for a 30-year extension, ensures long-term project stability.
Public interest is substantial, particularly for the Bang Sue site, where over 100,000 prospective tenants have registered. The land lease fee, set at 36% of the appraised land prices, balances revenue generation for the SRT with affordable housing costs. SRT revenue is projected to begin in 2027.
SRTA is currently preparing the housing sites for the environmental impact assessment (EIA) approval process. Beyond lease fees, the SRT will receive dividend payments estimated at approximately 70% of the project’s net profit, as confirmed by SRTA acting president Supakorn Supasincharoen. This profit-sharing model benefits both entities and contributes to the “Home for Thais” program’s success.
The “Home for Thais” project has garnered significant nationwide attention, with approximately 350,000 individuals registering interest; 140,000 have pre-qualified for GHB mortgages. This response highlights the demand for affordable housing and the initiative’s positive impact on Thai citizens. The development promises to address a critical societal need, contribute to economic growth, and stimulate further development in the chosen locations.
