A real estate expert has raised serious concerns about the Thai government’s “Baan Pheu Khon Thai” (Homes for Thais) initiative, arguing that it will only benefit a select few individuals while potentially causing long-term harm to the State Railway of Thailand (SRT). The project, which aims to provide affordable, fully furnished condos and homes near urban centers on SRT-owned land, is being criticized for its economic inefficiency and the impact it could have on the SRT’s financial health.
Under the plan, the government proposes to offer homes with mortgage payments starting at just 4,000 baht per month on 99-year leasehold agreements. However, Sopon Pornchokchai, the president of the Thai Appraisal and Estate Agents Foundation, believes that the four pilot areas selected for the project—Chatuchak and Thonburi in Bangkok, Chiang Rak in Pathum Thani, and Muang district in Chiang Mai—already have sufficient real estate inventory, making the initiative unnecessary.
In particular, Sopon pointed to a planned development in the Chatuchak area on Vibhavadi-Rangsit Road, where over 1,100 condo units are already available from private developers, priced between 1.46 and 3.04 million baht. The government’s proposed project would offer 1,232 units in the same area, priced between 1.76 and 3 million baht—comparable to private sector offerings. Sopon argued that the government project would not add any meaningful value to the area and could lead to oversupply.
Sopon also criticized the financial terms of the deal between the government and SRT, particularly the one-time payment of 100 million baht for the land leases. He argued that this amount grossly undervalues the land, warning that the SRT could stand to earn as much as 1.63 billion baht in rent over the 99-year period if the land were leased at market rates. The low lease payment could deprive the SRT of critical long-term revenue, he said.
Moreover, Sopon raised concerns about the financial feasibility of the project itself, particularly the construction costs. He estimated that building a condo unit in the Chatuchak area could cost up to 3.15 million baht, while the government plans to sell them for an average price of just 2.36 million baht. This price gap could result in significant losses for the government, Sopon warned.
“The project will only benefit a few fortunate buyers who will have the chance to purchase and resell these units after five years,” Sopon said. “Meanwhile, the wider public will see little to no tangible benefits. This scheme risks creating an unfair market and could strain the SRT’s financial resources in the long run.”
The “Homes for Thais” project, which has been marketed as a way to provide affordable housing options to lower-income citizens, continues to face skepticism from industry experts who question its sustainability and long-term economic impact.
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