Expert Voices Concerns Over 'Homes for Thais' Project

A real estate expert has raised concerns about the government's 'Baan Pheu Khon Thai' (Homes for Thais) initiative, labeling it as potentially detrimental to the State Railway of Thailand (SRT) and beneficial only to a select few. The project proposes offering fully furnished condos or houses on SRT land near urban centers, with mortgage payments starting at approximately 4,000 baht per month under a 99-year leasehold.

Market Saturation in Proposed Areas

Sopon Pornchokchai, president of the Thai Appraisal and Estate Agents Foundation, highlighted that the four pilot areas—Chatuchak and Thonburi in Bangkok, Chiang Rak in Pathum Thani, and Muang district in Chiang Mai—are already saturated with properties for sale. He pointed out that private developers in Chatuchak alone are offering over 1,100 condo units, questioning the added value of the government's project.

Financial Implications for SRT

Sopon criticized the proposed one-time rental fee of 100 million baht to the SRT, arguing it significantly undervalues the land. He estimated that the SRT could earn at least 1.63 billion baht in rent over 99 years, suggesting the current arrangement could severely impact the SRT's long-term finances.

Construction Costs and Financial Losses

Moreover, Sopon warned of potential financial losses due to the project's construction costs. He cited the Chatuchak project as an example, where building costs per unit could exceed the selling price, leading to losses for the government. He concluded that the project would primarily benefit a few individuals, creating an unfair situation and straining SRT's finances.