The Treasury Department's auctions to allow the private sector to develop low-cost housing projects with 2,750 units on eight state land plots in as many provinces are expected soon.

The department informed Treasury officials in related provinces to invite companies to jointly invest in the Pracha Rat (People's State) housing scheme, said director-general Patchara Anuntasilpa.

Provinces that are ready to commence bidding can begin, he said.

The Treasury Department plans to offer state land in eight provinces for development of low-cost housing projects, allowing low-income earners to own their own homes at affordable prices.

Of the land, 30 rai is located in Khon Kaen province, which will be developed into 292 housing units. Ten rai in Chon Buri province will be developed into 186 units, and 3.3 rai in Chiang Rai province will be developed into 353 units. Fifteen rai in Chiang Mai province will be developed into 584 units, while 29.2 rai in Nakhon Phanom will be developed into 322 units. Another 6.2 rai in Prachuap Khiri Khan province, 55.1 rai in Lampang and 23.2 rai in Udon Thani will be developed into 139, 618 and 264 units, respectively.

The low-cost homes will be leased to those earning up to 35,000 baht a month for 30 years.

The 11.4 million recipients of the government's welfare and subsidy scheme are the Treasury Department's first priority for leasing the planned housing projects.

If there are residential units remaining, the department will offer the leasing rights to those earning below 35,000 baht a month before allowing other people leases, he said.

Under the 30-year lease contract, the residential units are priced between 350,000-700,000 baht each. Up to 30% of the area will be reserved for common and commercial areas to generate income for the project, which will be used for maintenance. Those who get the lease rights can renew their contracts for another 30 years.

To attract property developers, the Government Savings Bank and GH Bank offer them five-years of pre-financing worth 4 billion baht with a fixed 3% rate for the first three years, and 1 percentage point minus the minimum lending rate for the fourth and the fifth years.

For mortgages, lessees are entitled to a reduced loan rate of 2.75% for the first four years, and 0.75 percentage points minus the minimum retail rate for general borrowers and 1 percent minus MRR for borrowers who are given special lending conditions by the bank through the remainder of the loan term.

Mr Patchara said the department will take part in another project, developing 1 million units for low-income earners.