Land auctions prove lucrative for Thailand Treasury

Thailand’s Treasury Department on September 30 reported its highest revenue collection in nearly a century due to greater numbers of land lease auctions and renewals of major lease contracts.

Deputy Finance Minister Paopoom Rojanasakul announced the revenue collection results of the Treasury Department for the 2024 fiscal year, which ended on September 30, stating that a total of 14.4 billion THB ($436 million) had been collected, marking a 57.9% increase from the previous year.

He said this exceeded the target by 25.4%, the highest in 91 years, and a record since the department's establishment. This outcome was due to the expedited land lease auctions nationwide and the strategic renewal of major lease contracts, which increased rental income.

There are currently 225,820 state land leaseholders, with 86% under social leases to support low-income earners and farmers, and 14% under commercial leases. In terms of revenue, 98% of the Treasury Department's income comes from commercial leases, while social leases account for 2%.

According to Paopoom, the department aims to generate total revenue of 55 billion THB to be contributed to the national treasury over a five-year period from 2023 to 2027, meaning it must collect at least 10 billion THB annually.

The plan is to accelerate the increase of rental rates for commercial leases in the private sector, aiming to set rents equivalent to a return on assets, now at 3%. However, the policy of providing discounted rents for individuals leasing land for residential and agricultural purposes will continue.

Paopoom said that in the 2025 fiscal year, the Treasury Department will continue the Thanarak Eua Rat project, providing low-cost land leases to citizens across the country. The goal is to improve, speed up, and expand the project to enhance housing and livelihood security for citizens on low incomes.