Factors Influencing Real Estate Developers' Decision to Participate in The Baan Larn Lhang Housing Program (Phases 1–3, 2018–2024)

Abstract

This research studies developers’ affordable housing strategies, driving factors for participation in the Million Housing Project (2018–2024), and operational outcomes. Using a mixed-methods design, data were gathered from corporate documents and interviews with executives from four case study including SET-listed and Non-SET companies. The Analysis was guided by CSR/ESG, subsidy, and credit underwriting frameworks.

The study findings reveal that 1) entrepreneurs view affordable housing development as a business opportunity coupled with corporate social responsibility, whereby listed companies participate liquidate their existing inventory, while half of non-listed companies apply for loans to develop new projects and the other half bring already-developed projects into the program; 2) listed companies are driven by corporate vision and internal expertise, whereas non-listed companies prioritize local market factors, with limited purchasing power and household debt serving as shared external constraints; 3) participation enhances their image sustainability, through which listed companies can effectively accelerate cash flow, while non-listed companies gain publicity and some can reduce their financial costs through project development loans; however, high loan rejection rates and selling price caps remain  major limitations.

Strategically, the government must move beyond financial incentives to integrate, non-financial support. Relaxing zoning regulations and land subdivision laws are necessary to facilitate budget development. Additionally, expanding public infrastructure near industrial hubs is essential to lower supply-side costs. sustainably incentivizing continuous private investment.