Offer for developers to build low-cost housing in 21 areas

Rusnah struck a gong at the launch of Mapex 2017 in Ipoh Parade shopping centre while Khoo (second from right) and the organising committee members look on.

THE Perak government has identified 21 areas in the state for the development of low-cost houses for the people.

State Housing and Local Government Committee chairman Datuk Rusnah Kassim said the areas were being offered to developers as areas to build the low-cost houses called AmanJaya 1 homes.

“We are inviting developers to work with us to build these. We already have the design and building plans,” Rusnah told reporters after opening the three-day Malaysia Property Exhibition (Mapex) 2017 at Ipoh Parade shopping centre last Friday.

“Developers need not pay for the land and are only required to help construct the homes,” she added.

When asked the locations for the 21 areas, Rusnah said they were in all 12 districts in the state.

She also said that some 11,000 people had applied for the AmanJaya 1 homes, which will be priced at RM70,000 or lower.

“The state is serious about achieving its ‘One House, One Family’ goal. We are trying to give various incentives to developers to build more low-cost houses,” she said, adding that there were still many people who cannot afford a RM300,000 house.

On the release of bumiputera lots to be sold openly, Rusnah said there was a concern that developers were selling these lots before they were approved to be released.

“There is 7% penalty, but developers are willing to pay it. I understand that this helps with their cashflow. There are also calls from certain quarters to increase the penalty for developers,” she said.

“We do not need the penalty, we need more houses,” she added.

In his speech, Real Estate and Housing Developers Association (Rehda) Perak Chairman Tony Khoo said Rehda hopes that the government will review the compliance costs for developers such as premiums, National Water Services Commission connecting charges, development charges and also property-plan ratio guidelines.

All this, he said, would allow developers to bring down the cost of building, providing more affordable homes for people.

“The rising cost of housing could can be reduced if the state and the Federal Government help to reduce compliance costs.

“Rehda is aware of the rising cost of housing but developers have no choice but to transfer the compliance costs to buyers,” he said.

He said, based on a study conducted by Rehda, compliance costs and cross subsidies add about 10% to the cost of houses.

“Among the compliance costs and cross subsidies paid by developers to the state for a housing unit are land sub-division, premium, development charges, earthwork approval, landscaping approval, cancellation of interest restriction and contribution for road and drainage plans.

“For the Federal Government, some 20 charges need to be paid, including connecting charges for utility companies,” he said, adding that for one unit of housing priced at RM200,000, the developer must pay a total of RM18,000 in compliance costs alone.

Khoo also said the current market conditions had caused potential home owners and prospective house buyers to postpone their purchase plans for their first home.

“In the wake of the sluggish economic climate, most Malaysians are adopting a ‘wait-and-see’ approach towards future property purchases and transactions.

“Rehda believes in taking a pro-active measure in assisting buyers in obtaining the best home financing solution via collaborations and smart partnerships with real estate developers,” he said.

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Metro , Perak , low-cost housing


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