There are many reasons for Malaysians not buying affordable homes. One of the main reason is because the affordable homes project is not near to public transport stations. If this is the main reason, then we have one good news. According to Transport Minister Anthony Loke, Railway Assets Corporation (RAC) owned over 1,400 hectares of land in Selangor and there are several locations deemed having the appropriate size for affordable housing projects. Let’s read a bit.
Article in edgeprop.my here. Transport Minister Anthony Loke said that affordable homes built at transportation hubs will enhance public transport utilisation and drive population and economic growth in surrounding areas. He said, “Such initiatives will be in line with Pakatan Harapan’s plan to build one million units of affordable homes within a 10-year period.” He was speaking at the signing of a Memorandum of Understanding (MoU) between Menteri Besar Selangor Incorporated (MBI) and RAC here yesterday. The MoU will enable both parties to collaborate in developing strategic railway assets, focusing on trans-oriented development (TOD) including affordable homes as well as the implementation of Smart Selangor initiatives within transit hubs.
Profitable to RAC – Loke told reporters that land located near train stations was strategic and valuable, and developing housing in such areas would likely bring huge returns to RAC. He added, “Over the next few months, we’re looking at getting into the details. In fact, some land had already been identified (for housing purposes), one of them is in Bangi.” Article in edgeprop.my here.
It is very important to ensure that the profits from some of these development projects on RAC lands should be a recurring one. This is because once these plots of lands are sold, RAC loses its assets and yet has to continue to ensure public transport remain affordable to Malaysians. If we look to Hong Kong as an example, one main reason the MTR Corporation is profitable is NOT because of the sales of tickets for their MTR (known as MRT here). It’s because they own many of the buildings built on those land and they continue to enjoy good rental because these assets are built on strategic plots of land with good connectivity. Will keep following the next announcements for RAC’s affordable homes plan.
<Featured Image is courtesy of Stock Photos from Kapi Ng>
Article written and edited by Charles. News article summarised by Dina Batrisyia.
written on 12 April 2019
Next suggested article: Making sure public transport remains affordable could be achieved