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PR1MA no more, maybe. “too big a number and little land to work on.”

PR1MA no more, maybe. “too big a number and little land to work on.”

If you have read not too long back, our Railway land will be used for affordable homes. (click to read) This will help Railway Assets Corporation to earn profits beyond just the tickets it is selling today. I support this idea because these homes will be very near or even connected to the rail lines. So, essentially a Transit Oriented Development (TOD). Our KPKT ministry also asked for lands from the states so that it could build more affordable homes too. KPKT needs more lands. Please help. Beyond just these, we also have announcements about 100,000 affordable homes to be delivered within 2019. This was announced by the KPKT Minister Zuraida Kamaruddin a few times. Earlier article hereThen what about PR1MA?

Here’s an update in thestar.com.my PR1MA may soon be dissolved but first a due diligence and a turnaround plan will happen first. Its chairman Tan Sri Eddy Chen announced. He said, “We found it very challenging because of the business model is numbers driven. It was given a big number to build and very little land to work on”. PR1MA was established under the PR1MA Act 2012 to plan, develop, construct and maintain high-quality housing with lifestyle concepts for middle-income households in key urban centres. It’s supposed to build homes with price range of RM100,000 to RM400,000. PR1MA is open to all Malaysians with a monthly household income of between RM2,500 to RM15,000. Here’s an update in thestar.com.my

Yes, RM400,000 per home is higher than the affordable range as per BNM based on median household price. Yes, I also wonder why people with household income of RM10,000 or higher and all the way to RM15,000 are unable to buy a normal priced home from the market. Even a RM500,000 home for example will only incur a monthly mortgage of RM2,500. That’s just 25% of a RM10,000 salary and just 17% of a household with a RM15,000 income! Yea, the reason should be this. Earlier article: Simply spending way too much dear Malaysians Anyway, let’s wait and see what happens next. What is important is that we continue to have more affordable homes in right locations for Malaysians. Happy following.

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<Featured Image is courtesy of Stock Photos from New Africa >

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

Next suggested article:  If only I could afford. Thinking distance versus price.

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2 thoughts on “PR1MA no more, maybe. “too big a number and little land to work on.””

  1. Dear Charles,

    If the due diligence outcome and turnaround plan is not favourable, what will happen to the pr1ma owners who had purchased the pr1ma homes? Possibly a takeover plan or ‘rebranding’ by the new PH government?

    After PR1MA dissolved, how PR1MA as the developer is able to convert the Master title to Strata title for the owner?

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