BOI Launches New Measures to Boost Affordable Housing Investment
BOI Launches New Measures to Boost Affordable Housing Investment
The Board of Investment (BOI) has unveiled special new measures aimed at stimulating investment in residential housing projects priced at 1.5 million baht or less. This initiative is part of a collaborative effort with the Government Housing Bank to expand homeownership opportunities for low-income Thai families.
Under the new promotion, property developers can apply for BOI investment incentives to construct housing projects capped at 1.5 million baht per unit. The Government Housing Bank will evaluate and certify qualifying developers, who can then submit applications for BOI promotion by the end of 2025.
“Affordable housing is a national priority to ensure all Thai citizens can realize the dream of home ownership,” said BOI Secretary General. “These new measures provide tax incentives to developers to increase the supply of moderately priced housing stock.”
To be eligible, residential projects must meet specific criteria set by the Government Housing Bank:
- For condominiums, a usable area must be at least 24 sq.m. per unit
- For townhouses/detached homes, the usable area must be at least 70 sq.m.
- Projects must include amenities like parking, security, cleaning services, and common areas
Developers must first obtain construction permits and Government Housing Bank certification before applying to the BOI for promotion privileges.
Once approved, developers will receive corporate income tax exemption for 3 years capped at their total investment amount. Only construction costs for utilities, roads, and public amenities within the project qualify for the tax break.
“The high costs of land and construction make it very difficult for developers to profitably build housing below 1.5 million baht,” noted BOI Secretary General. “This incentive helps make those moderately-priced projects financially viable.”
The Government Housing Bank has already opened an online application portal at www.ghbank.co.th for developers seeking certification to apply for BOI promotion.
Both the BOI and Government Housing Bank see this joint investment promotion as critically enhancing residential options for lower-income Thai families striving for home ownership.
Author: Panisa Suwanmatajarn, Managing Partner.
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