In a Circular issued by the Sarawak Planning Authority (SPA) this week, Sarawak Housing and Real Estate Developers’ Association (SHEDA) and other industry stakeholders were informed that the payment of levy in lieu of
building SPEKTRA Lite, SPEKTRA Medium and PUTERA Housing had taken immediate retrospective effect. SHEDA supports the Sarawak Government’s objective of achieving housing parity for a prosperous future and we
believe that under the steady leadership the Premier of Sarawak, this aspiration can become a reality for Sarawakians. Financial sustainability is a crucial factor in a development’s project cycle. Under the said Circular, 50% of the rate of contribution will have to be paid upfront by the developer even before approval of the Advertisement and Sales Permit is granted. Practically speaking, the implications of the proposed mechanism means that even before marketing of the property can take place, developers will face increased upfront cashflow requirements. In view of the cascading impact such provisions will have on the business of property development and in light of the immediate implementation of the Circular, SHEDA urges the Sarawak Government to grant developers the option between building SPEKTRA Lite, SPEKTRA Medium and PUTERA Housing or to subscribe to the payment of levy in lieu of building Affordable Housing.
