Thailand’s Government Housing Bank has approved a One Million Homes project that is aimed at creating affordable housing for low-income earners.
GHB President Chatchai Sirilai (pictured) said that GHB will put aside THB 60 billion for the project.
The One Million Homes project will offer low-interest loans worth THB 50 billion to eligible, low-income earners who want to buy homes priced at less than THB 1 million.
The remaining THB 10 billion will be lent to property developers with plans to build affordable houses.
Those with a maximum monthly income of THB 25,000 will be entitled to a 40 year-mortgage. A 3 percent interest rate will apply during the first five years with repayments of THB 3,800 a month.
For low-income earners with a monthly salary higher than THB 25,000 baht, the interest rate will apply for the first three years.
The construction of 270,000 affordable housing units is already underway.
About half of them will be for sale by the end of this year.
Allowing low-income earners to own their homes has to be applauded. That said, there is already evidence of oversupply in some locations at the lower end of the Thailand’s property market.
Perhaps some of these completed homes could be used as part of this One Million Homes initiative?