Perak state prepared to help subsidise development of low- and medium-cost housing projects

Visitors throng the exhibition at the Ipoh Parade Shopping Centre. — Photos: RONNIE CHIN/The Star

THE PERAK government is prepared to subsidise the compliance costs to develop low and medium-cost housing projects larger than 8.09ha (20 acres) in a move to create more affordable housing in the state.

Perak Housing and Local Government Committee Chairman Datuk Rusnah Kassim said the state government is well aware that compliance charges incurred by developers are among the factors contributing to the rising cost of housing.

“If developers are willing to build low- and medium-cost houses on all 20 acres of a particular project, I don’t see why the state government can’t help to lower their costs by lowering land premiums and waiving development charges as well as National Water Services Commission (SPAN) charges.

“We are willing to help so that more affordable housing can be built to benefit the people,” she told reporters after opening the Malaysia Property Exhibition (Mapex) Perak 2016 in Ipoh last Friday.

Noting that all this would be done through the newly set up Perak Housing and Property Board, Rusnah said the state had set a target to build 35,500 affordable houses from 2013.

Rusnah (fourth from left) visiting one of the booths with (from left) Khoo, Perak Chinese Chamber of Commerce and Industry Chairman Datuk Liew Sew Yee and event organising chairman Loh Ban Ho.

“To date, with help from the Real Estate And Housing Developers’ Association (Rehda), 26,020 houses have been built with another 15,122 units in progress and we are positive about achieving our target,” she said, adding that there was currently 12,131 applicants on the State Secretariat’s Housing Department waiting list for low-cost housing.

Earlier, Rehda Perak Chairman Tony Khoo Boon Chuan said it is possible to reduce housing prices if the state and federal governments are to cut compliance charges, which are among the factors that push the prices of houses upwards.

“Rehda Perak is aware of the increase in house prices every year, but developers have no choice but to transfer the compliance costs to buyers as various agencies have been increasing or introducing new charges from year to year,” he said.

“Similarly, the absence of a structured and transparent release mechanism for unsold bumiputra units has created cash flow uncertainties for developers.

“What the industry is urging is the implementation of a fairer, more transparent, certain and structured release mechanism so cases of resources being tied up unproductively can be minimised, if not eliminated,” he added.

Khoo said the three-day exhibition organised by Rehda Perak, was one of the largest to be held in the state, with property worth RM5bil from 37 developers offered for sale.