More affordable homes are coming

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To build affordable homes, the developer will need to have land and the price of the piece of land should be low. This is because they are not supposed to cut corners, thus the construction cost would not differ much. The savings in terms of prices would then come from the land price. Else, another way is to build more units. If the development is right next to a LRT / MRT station or at least within walking distance, I think it’s definitely okay to build a higher number of units. The owners could then be encouraged to take the public transport instead. After all, we now have the MY100 and MY50 cards. Details for these cards here. The more one could save, the more downpayment one could save for the next property or for future upgrades.

Remember this article some time back? KPKT scouting for lands for affordable homes. Everything is moving along which is a good sign. Article in edgeprop.my here. According to our Housing and Local Government Minister Zuraida Kamaruddin, there are already offers of land from states and currently, the suitability of those lands are being reviewed. In fact it’s a little more advanced than just land offers because Zuraida said that the government has already issued request for proposals for three housing projects. In order to keep the prices of these affordable units low, Zuraids mentioned that utility companies were requested to absorb the cost for development of respective utility infrastructures to reduce capital contributions and housing prices. Beyond this, other steps are exempting SST for building materials, encouraging the usage of cheaper and speedier IBS and seeking lower costs of acquiring lands. Article in edgeprop.my here.

It’s good news to know that more affordable homes are coming but it would be even better if the location of these land be informed to the world in advance and perhaps open for registration of interest so that KPKT could then decide based on the actual demand before building them. It is quite clear that some of these affordable homes were not built at locations favoured by the buyers and this will actually add into the number of unsold homes which is a negative sign to the market. Since the federal government is now reviewing the land offers, we just have to wait for more announcements in the near future then. Happy following and anticipating.

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Article written and edited by Charles. News article summarised by Dina Batrisyia.

written on 28 March 2019

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