Groups seek expanded privileges

       Three real estate associations have urged the Board of Investment (BoI) to expand privileges now granted only to developers of BoI homes in Zone 1 to Zone 2 covering major provinces, and to allow a mix of unit prices in a single condominium.
       The BoI Home policy offers tax benefits to developers of low-priced housing. Under a new regulation that took effect on June 10, the minimum number of units in a project was reduced to 50 from 150.
       As well, the minimum space of a condominium unit was reduced to 28 square metres from 31, and the maximum unit price was raised to 1 million baht from 600,000. Townhouses and detached houses must have minimum usable area of 70 sq m and a maximum price of 1.2 million baht. All rules apply to Zone 1 in Bangkok and adjacent provinces.
       Issara Boonyong, president of the Housing Business Association, said the incentives should be extended to Zone 2 where living and construction costs are almost the same as in Zone 1. Zone 2 covers 12 provinces, five of which have high land costs. They include Phuket,Chon Buri, Chachoengsao, Rayong and Ayutthaya, as some are industrial provinces and some are tourism destinations.
       Atip Bijanonda, president of the Thai Condominium Association, suggested the BoI allow condominiums to have units that meet its pricing conditions,as well as higher-priced units.
       Currently, only detached housing and townhouse estates can offer units priced above the BoI maximum, along with units that meet the regulations."If the Industry Minister approves the changes in two conditions, the number of new BoI units applying each year would reach 20,000 as he has targeted," he said.
       In the 16 years since the policy took effect, Mr Issara said applications had fallen significantly from 17,000 units in the first year because few developers could meet the conditions.
       Industry Minister Charnchai Chairungruang favours the changes and plans to propose them to the cabinet.
       Since the BoI changed its conditions in June, it has received 25 applications as of Aug 14, up from five in the same period last year, with 8,690 units.
       Preuksa Real Estate Plc, the country's second-largest developer, has proposed 17 townhouse and single house projects while Supalai Plc seeks incentives for one condominium. Supalai plans one more project, if mixed prices are allowed.
       The BoI Home approval process takes around 40 days.