News: Maximum Price of Affordable Homes Reduced to RM300,000

Jan 29, 2019

 

Housing and Local Government Minister Zuraida Kamaruddin said on Monday (28 Jan) that the federal government has set the price of affordable housing at up to RM300,000, reported the Sun Daily.

Previously, the maximum price of low-cost residential properties was capped at RM500,000. However, the said ceiling price was considered out of reach for most households belonging to the low- and middle-income groups.

“The fixing of prices for affordable house will depend on location and the local mean income. This will be determined before the project commences… not more than RM300,000 definitely. In Alor Star, the price may differ. In KL, it will also vary,” said Zuraida Kamaruddin.

Apart from having a five-year moratorium, during which the homes can’t be rented out or resold, the units can only be sold to the Housing and Local Government Ministry (KPKT), at prevailing market value, she said when launching the National Housing Policy 2018-2025, which represents the first national policy introduced by the Pakatan Harapan-led federal government.

A sub-policy of National Housing Policy 2018-2025 is the National Affordable Housing Policy (DPMM), which is currently being created by the authorities to help the low-income group (B40) own residential properties.

Apart from the aforementioned maximum price, “the DPMM will also stress on the size of the house which should be at least 900 sq ft as well as the amenities, while the developers must build houses within the specifications set for the B40 group.”

Zuraida Kamaruddin also revealed that the authorities have created the National Affordable Homes Council, which is looking into the development of affordable homes on endowed land.

Furthermore, the National Housing Policy 2018-2025 contains 57 action plans, 16 strategies and five focuses.

The five key areas comprise accessibility, housing quality, upgrading the housing fund scheme, data as guide for future housing construction, and provision of amenities in affordable residential projects.

Zuraida Kamaruddin also witnessed the signing of a memorandum of understanding for affordable houses and youth transit housing (Rumah Transit Belia) to be undertaken by Pembinaan Kery, TISY Sdn Bhd and the government.

The government, via KPKT, will provide the land sans development cost, in a bid to construct 10,000 units of transit houses for the youths and M40 group in Malaysia, particularly in major urban areas.

Furthermore, she announced that the three-day Home Ownership Exposition at the Kuala Lumpur Convention Centre starting on 1 March will showcase about 22,000 unsold homes, of which 24 percent cost below RM300,000.

These properties are collectively worth RM22.5 billion, but each unit will be sold at a discount of at least 10 percent. Banks will also participate to provide buyers with financing.

 

Image source: The Sun Daily

 

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