It is projected that by 2020 the Greater Kuala Lumpur area population will rise from 4.5 million people to 10 million. The Business Times reports developers are signing on in support of participating in affordable housing building programs in order to create enough for middle-income families.
If the average household in the country has four people, this will mean there is a need to build 150,000 new houses a year, and this is compared to the only 200,000 new and old homes combined sold nationwide last year. In addition, recently the Selangor state government imposed a 30 percent development charge on all improvements that it has allowed on any development land. This, in combination with increasing costs in materials and labour, is also driving up the cost of what housing is being built across the country.
Real Estate and Housing Developers? Association (Rehda) deputy president Datuk FD Iskandar told the Business Times he sees a lot of support by developers to meet the demand for quality affordable housing and that the 1Malaysia Housing Programme (PR1MA) established by the government ?cannot do it alone.?
?We are willing to cooperate with them,? he says.
Iskander also points to the Selangor State Economic Development Corporation (PKNS), established in the 1970s, and calls on them to meet what he says was their initial goal to build affordable housing.
?Sadly today, PKNS is selling houses that are priced at more than RM1 million (US$326,370),? says Iskander. ?Where is their social responsibility? They get cheap land while private developers pay at market rate. On top of that, PKNS gets other benefits, yet they are building expensive houses.?
Iskandar, who is also Glomac Bhd group managing director, says PR1MA can be the facilitator of projects to build affordable homes by private developers, ?as it has the list of first-time home buyers.?
He further says the federal and state governments could also identify pockets of land in their respective areas to be tasked to private developers to build affordable homes.
?The authorities can even stipulate that these developments must have as high as 50 percent affordable units,? Iskander adds.
In this respect, the Business Times says PKNS has a ?crucial role to play? as it still has plenty of land to be developed.
?The state must do its part in solving the housing woes of the rakyat, especially the middle-income,? writes columnist Khaidir A Majid.
This perception is supported by Iskander.
?The high-income earner has no problems buying houses. So too for the lower-income earners who are entitled for low-cost houses,? Iskander explains. ?It is the middle-income group which is feeling the pinch.?
However, Iskandar says buyers must also change their mindset in choosing housing location.
?You cannot expect to buy an affordable unit in Bangsar (Kuala Lumpur) at RM300,000. An affordable unit there might be RM1 million, while those in Shah Alam RM400,000 and Rawang RM300,000,? he says.
The Business Times says private developers are already building affordable houses in some areas, but many of these developments are remote from Kuala Lumpur where land is cheaper. However, public transit is being extended with the federal government currently building multi-billion ringgit Light Rail Transit (LRT) and Mass Rail Transit (MRT) systems.
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