An aerial picture shows the controversial housing estate built for judicial officials at the foothills of Doi Suthep in Chiang Mai. (EPA-EFE photo)

The group leading a campaign against the controversial housing project at the foot of Doi Suthep on Saturday welcomed Prime Minister Prayut Chan-o-cha's assurance that no one is permitted to stay at the complex while the government is trying to resolve the matter.

Thirasak Rupsuwan, who serves as a coordinator of the network fighting to reclaim the Doi Suthep forest area, said he found Gen Prayut's remark positive and a sign that the coming talks with the government will be fruitful.

Mr Thirasak was speaking at a forum organised by the group on Saturday in Chiang Mai for interested parties to discuss the housing project.

The forum was attended by university students, academics, members of the media and security officials.

The forum was held ahead of a visit to Chiang Mai by the Prime Minister's Office Minister Suwaphan Tanyuvardhana who was assigned by Gen Prayut to hold talks with the groups protesting against the housing project.

Both sides say they hope to find common ground during the meeting as they discuss the group's demands, which include the demolition of 48 houses under construction for judges and justice officials.

The houses are built in a residential area of the Administrative Office of Appeal Region 5 in Mae Rim district. They sit on the highest location of the compound. The government has previously resisted calls to pull down the complex, as the cost would be too high.

Emphasising the importance of forest conservation in his weekly TV address on Friday, Gen Prayut touched on the housing project matter, saying the cabinet felt uncomfortable about the Doi Suthep housing project as it was affecting not only Chiang Mai residents but also Thais across the country.

He said he was following up on information about the project given out by various government offices, academics and media so he could hear information from all sides. The government's most urgent task was to regrow the forest at the housing project which was felled during construction, Gen Prayut said.

At this point, he said, he wouldn't allow anyone to stay in the houses and the rest of the problem will later be sorted out through talks with relevant parties.

Jatupoom Meesena, a researcher with Chiang Mai University's Forest Restoration Research Unit, told on Saturday's forum that although the estimated minimum cost of restoring the 58 rai forest felled for the housing project is only 1.4 million baht, he believed the hidden losses far surpassed that.

The calculation of the forest restoration is based on the Royal Forest Department's standard assessment of restoring a deforested area where soil has been left to deteriorate over a long period. The location used to be a dense forest area with fertile soil.