Advertisements

RM100 per month, 190 rooms, max of 18 months.

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp

[Header image from NST.]

Yesterday in a talk in Sunway Pyramid, I asked the audience about the home size which they could accept, assuming price is becoming such a huge issue that the size of homes must be made much smaller. The smallest answer I got was 400 sq ft. I showed them the image of a mosquito flat in Hong Kong and the size is merely 160 sq ft. Image as shown. Well, that’s when they need to buy a home. What if it’s for a short-term rental then? Well, perhaps a room more likely a room in a budget hotel is acceptable then? DBKL’s solution for youngsters from the B40 income bracket will be ready soon.

Article in NST.com.my here. There are two phases and the first phase will be completed by the end of 2019. 190 tenants could then rent a room each for a maximum of 18 months. The room units measure 7 sq metres (73 sq ft) each. The furnishing, appliances and facilities provide are beds, microwaves, pantries, surau, reading corner and laundrette. There would also be a guard and warden to keep the facility and its tenants safe. KL Mayor Datuk Nor Hisham Ahmad Dahlan said the units are chiefly for single Malaysians aged 18 to 28, earning RM2,000 or below and working within a 25km radius of the facility. He said, “Registration for the first phase should open by August. Tenants have a choice of signing a tenancy for one year or 18 months. They cannot exceed this term because we need to rotate the units for the benefit of as many young and struggling Malaysian workers.”

DBKL will be spending RM5 – 7 million to remodel the homes. No maintenance charge would be imposed except for the RM200 and RM100 collected as deposit and rental, respectively. The mayor said that the other locations for these homes in the future include Jalan Putra, Jalan Tiong Nam and Jalan Haji Hussein. Please refer to the full Article in NST.com.my here.

190 tenants x RM100 per month = RM19,000 per month. Hopefully, this is enough to cover the maintenance of these units and the salaries of the guard and the warden PLUS some extra amount for contingencies. Already the cost to remodel these homes are said to be RM5 million. For a unit with 190 rooms, it’s RM26k cost per room. I would not say this is a high amount as long as everything is durable to last at least a couple of years? Well, with more experience, I am very sure DBKL could reduce these costs further. Perhaps have a contest where the best design with the lowest cost is taken? Malaysians are pretty creative and I am sure everyone benefits from lower costs. Happy following.

Please LIKE kopiandproperty.com FB page or Sign Up for free to get daily updates about the property market.

written on 16 April 2019

Next suggested article: Stop all new developments in Mont Kiara and Sri Hartamas (proposed already)

Advertisements
kopiandproperty.com

kopiandproperty.com

kopiandproperty.com is everything about property related writings and news. Enjoy reading with a latte.

Leave a Replay

Property investment news everyday?

An article a day, keeps updated all the way. Subscribe for free!

%d bloggers like this: