Thailand supplies houses for all budgets, but how have they achieved this?
We often read in the news about the latest condominium success story in Bangkok. The one that is situated in the tallest building, the one that has achieved a record breaking price or even how the thirst for luxury property is still at an all time high.
But there is another side to Thailand’s property market that makes for interesting reading. The Kingdom’s success in ensuring that its whole population is housed. According to the 2010 population and housing census, approximately 81 percent of the population are homeowners. A similar story to Singapore where the government have been active in making this happen.
Back on home soil, Thailand’s government have made a concerted effort to ensure that there is sufficient affordable housing. This has been achieved thanks to the National Housing Authority and Community Organizations Development Institute who are the major players in aiding this supply.
Each agency has a slightly different approach. The National Housing Authority builds low cost housing geared specifically towards lower income families. Whereas the Community Organizations Development Institute works alongside demand to rehouse families living in slums through community schemes to rebuild houses. The government plays their part by subsidising infrastructure and offers loans to improve on housing.
Thailand: a shiny example
In a recent report, Housing the Millennials by Savills, the real estate firm list a number of factors to Thailand’s achievements. Citing Thailand as a great model for Indonesia to use to address their housing shortage. The global real estate firm list these as:
- Government engagement in affordable housing and synergy between authorities
- Clear goals and detailed methods
- Quick response to current issues
- Supply- and demand-driven approaches
- Low-rise structures in large quantity as the housing typology
- Using income band method in defining residents’ eligibility and housing prices
Thailand have taken an active approach in tackling housing issues since the 1970s with their housing policies. Initiated through a National Development Plan the first step was to clear slums by providing low cost housing. Over the subsequent 30 years public housing was built and between 2002 and 2010 there was a supply of one million units using precast construction. A concept that was pioneered in Singapore in South East Asia in 1980 as part of the growth of HBDs and has been a success ever since.
However Thailand did not mirror Singapore’s high rise buildings. Instead low rise buildings are typical of up to five-storeys. To date it is estimated that the National Housing Authority has built in excess of 700,000 units, of which 70 percent are situated in Bangkok Metropolitan Region meeting a quarter of the city’s population housing needs.
So whilst we may read about the latest condominiums with all the bells and whistles, lest us not forget the other end of the scale. And how Thailand has managed to provide housing for the masses regardless of budgets.