Decision-Making of Developers in Joining the Investment Promotion Measures for Low-Income Housing of Condominium Type (BOI Condos) in Bangkok Metropolitan Region from 2020 to 2024

Abstract

Encouraging private sector participation in the development of Affordable housing requires effective tax incentive measures, particularly through the BOI condos. This study examines developers’ decision-making in joining investment promotion measures for low-income (BOI Condos) by analyzing project characteristics, influencing factors, advantages, limitations, and performance outcomes. The study focuses on four real estate developers, including both listed and non-listed firms: Sena Development Public Company Limited, L.P.N. Development Public Company Limited, Diamond Ratchada Housing Co., Ltd., and Praeksa Land Co., Ltd.

The findings revealed that: 1) BOI Condos are predominantly low-rise projects comprising 200–500 units located in suburban Bangkok and its vicinity. These characteristics reflect the interrelationship among land cost, project scale, facilities, and BOI conditions, demonstrating that the policy significantly shapes housing supply patterns. 2) Listed firms adopt the BOI scheme as a long-term strategy and participate continuously, whereas non-listed firms engage on a project-by-project basis. Although tax incentives motivate all firms, participation depends largely on organizational capacity and capital structure. 3) BOI Condos offer advantages in reducing tax burdens and enhancing competitiveness. However, regulatory rigidity and policy uncertainty increase planning risks and may influence participation decisions.

The BOI measure supports affordable housing development by reducing corporate tax burdens, allowing firms to convert these savings into marketing advantages. Thus, firms that benefit most are those integrating low-income housing into their long-term corporate strategies. However, this study focuses primarily on developers’ perspectives, future research should extend to homebuyers to assess the broader impacts of BOI Condos.