SHEDA calls on authorities to recognize their difficulties, especially in building affordable housing.
(The Star_ 15 July 2011) KUCHING: Purchasers of terraced houses in Sarawak are in fact subsidising two-thirds of the cost of affordable housing, says the Sarawak Housing and Real Estate Developers’ Association (Sheda).
It said in a statement yesterday that the responsibility of building and selling low-cost units, “should rest on the government via agencies such as Syarikat Perumahan Negara Sdn Bhd (SPNB), and its mandated government-linked companies or other government schemes”.
It called on Federal and state authorities to “recognise the difficulties” faced by the private sector, and more importantly, “financial constraints on house buyers”.
The association said the cost of each affordable housing unit was RM120,000 on average but private developers were rule-bound to sell at around RM50,000.
Under state laws, every housing development larger than four hectares must include about 30% low-cost units.
The government-imposed limit for affordable housing, it added, was based on building costs of the late 1990s, when a double-storey terraced unit was between RM140,000 and RM160,000.
“However, today in Kuching, one has to pay a minimum of RM330,000 for a normal terraced house at a location far away, or not less than RM450,000 closer to town centres.
“Unless low-cost housing is fully taken over by the government, under the present policy, it is affecting private developers, while buyers of normal houses are cross subsiding low-cost units. All these has had an adverse impact on affordability.”
As a solution, Sheda’s statement proposed that the Federal Government’s 1Malaysia People Housing Scheme be reworked to cover a wider spectrum of potential buyers. The scheme presently is limited to houses between RM150,000 and RM300,000. Another scheme, the My First Home, is targeted at houses between RM100,000 and RM220,000.
“It is in Sheda’s opinion that the My First Home Scheme should include lower wage earners by removing the minimum capping of RM100,000 (excluding low-cost units) to assist buyers of medium-cost housing.”
It said the limits were inhibiting a large segment of house buyers from enjoying the privileges that could help the private sector address the low-cost housing issue.
Sheda also called on the government to find ways of improving the processing time and minimise procedural delays.
“Sheda trusts the government will seriously consider our appeal. Private developers want to provide house buyers with good quality yet affordable housing to all, whilst meeting the desired objectives of all stakeholders.”
