(1888PressRelease)
June 16, 2009 - Mr.Chanchai Chairungruang, the industry Minister said that “the Board meeting on June 10, 2009 chaired by Prime Minister Abhisit Vejjajiva, agreed to adjust conditions and retail pricing of promoted housing project that targets those in the low and middle income levels. This aims to stimulate investment amidst the current economic slowdown. It also aims to encourage more housing developments in Bangkok and surrounding areas (zone 1)”.
The new conditions and pricing of BOI Housing Project as agreed in the meeting include: project must comprise of at least 50 housing units in every locations. For Zone 1, any apartment building must have area per unit at least 28 square meters and with a maximum sales price of Bht 1 million (including land cost). For any town house or detached house, area per unit must not be less than 70-square meters with a maximum sales price of Bht 1.2 million (including land cost).
As for projects located in Zones 2 and 3, it was agreed to keep the existing conditions that there must be a minimum area of 31 square meters per unit with sales price not exceeding Bht 600,000 (including land cost).
"According to our assessment, to operate the projects in Zone 1, the investors incur primary costs of property and construction materials which comprise about 70-80% of the total cost. Due to the increase in wage rates, the committee allows the investors to increase the selling prices. The BOI Housing Project will give medium to low income people the chance to own a house in urban area which will help raise their living standards. However, there is no need to increase the prices in Zones 2 and 3 since the land prices in the area are not as high as those in Zone 1, and houses at the price range of Bht 600,000 per unit are still available,” said Mr.Chanchai.
The Board has been promoted medium or low income Housing Project since 1993. In Zone 1, the investors must build not less than 150 housing units in one project while in Zone 2 and 3 at least 75 housing units must be constructed. Promoting this activity is aimed at helping medium to low income people the chance to own a house. Since 2000, BOI has granted incentives for 185 projects and most of them are located in Zone1.
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