A woman checks out housing projects. Finance Ministry plans to develop housing complexes for elderly to prepare for an ageing society.PATTARACHAI PREECHAPANICH

The Finance Ministry plans to initially build 400,000 units in senior housing complexes as part of measures to prepare for the rise in the elderly population.

More units will be built in the future as the number of elderly increases, said Warotai Kosolpisitkul, deputy director-general of the Fiscal Policy Office.

There are more than 10 million Thais aged 60 and older, he said.

The Treasury Department plans to use state land in four provinces -- Chiang Mai, Chiang Rai, Chon Buri and Nakhon Nayok -- to build senior complexes, which are living facilities that include healthcare for the elderly.

The department is likely to open bids to develop the first land plots in Chiang Rai and Nakhon Nayok as senior complexes.

The department's plan calls for residences in senior complexes to be rented for 30 years with a renewal option of 30 years. Tenants are required to pay a lease, monthly rental fee of one baht per square wah, and a fee of double the rental fee.

However, the low rates will exclude plots in cities and prime locations, including land on the banks of the Ping River in Chiang Mai province.

Kobsak Phutrakul, assistant minister to the Prime Minister's Office, said the Treasury Department prepared four plots: 50 rai in Chon Buri, 14 rai in Nakhon Nayok, 64 rai in Chiang Rai and 7.5 rai in Chiang Mai. The rental fee for the Chiang Mai plot is set at 24 baht per square wah, he said.

Mr Warotai said some private hospitals including Bangpakok Hospital have expressed interest in jointly developing senior complexes.

Senior complexes are part of a series of measures approved recently by the cabinet to prepare for an aged society. An aged society means 14-21% of the population are 65 or older.

Other measures include encouraging companies to hire elderly workers by allowing them to deduct 100% of expenses incurred from corporate income taxes, mandatory pension funds and reverse mortgages, which are home equity conversion housing loans for the elderly.

The Government Savings Bank and GH Bank will provide prefinancing worth up to 4 billion baht in total.