Hurry up and apply for affordable housing

ELIGIBLE Penangites should start applying for affordable housing because developers may not carry out more of such projects.

State Housing Committee chairman Jagdeep Singh Deo said the profit margin of affordable housing projects was only about 20% and it was not considered lucrative for developers.

“We are grateful to Penang property developers who have created 12 affordable housing projects with 22,512 units since 2014.

“We understand that they might not maintain the pace. We hope eligible Penangites will snap up the offered units,” he said during a press conference at Level 53 in Komtar, Penang, yesterday.

M Summit Group managing director Datuk Albert Moh, who was also at the press conference, said the profit margin was only about half of what developers could make if they built high-end property projects.

“It takes us three years to deliver the affordable homes. If you divide the 20% margin into those years, we are only making about 6% a year with what we invest,” he said.

Aspen Group managing director Datuk M. Murly said prospective buyers of affordable homes in Penang tended to be slow in applying for such properties.

He said this was due to the five-year moratorium that places a cap on property appreciation.

“But new affordable housing projects may not be available in the future, so we hope eligible buyers won’t delay any further,” he said.

Jagdeep also announced that the ‘Mission Home-Possible 2.0’ affordable housing roadshow would take place until March in several locations on the island and mainland.

The first will be in Gurney Plaze today and tomorrow, while the December show will be in Queensbay Mall on Dec 19 and 20.

Next year, the road show will be held in Mydin Mall, Kepala Batas on Jan 23 and 24, Sunway Carnival on Feb 27 and 28, and Econsave Jawi on March 26 and 27.