Perak offers free land for affordable housing projects

About 21 places across Perak’s 12 districts have been earmarked for affordable housing projects, said State Housing and Local Government Committee Chairman Datuk Rusnah Kassim.

“We are inviting developers to work with us to build AmanJaya 1 homes. We already have the design and building plans. They need not pay for the land and are only required to help construct the houses.”

“The state is serious about achieving its ‘One House, One Family’ goal. We are trying to give various incentives to developers to build more low-cost houses,” she noted, adding that around 11,000 people have applied for these units, which costs up to RM70,000 each.

On freeing up bumi lots so these can be sold to non-bumiputeras, Rusnah explained that there are concerns that developers are doing this before getting the state’s approval.

“There is seven percent penalty, but developers are willing to pay it. I understand that this helps with their cashflow. There are also calls from certain quarters to increase the penalty for developers.”

“We do not need the penalty, we need more houses,” she stated after launching this year’s Malaysia Property Exhibition (MAPEX) at Ipoh Parade shopping centre on 28 July. The event was organised by the Real Estate and Housing Developers Association (REHDA).

During the opening, REHDA Perak Chairman Tony Khoo urged the authorities to reduce the compliance costs for developers so they can lower their construction expenses and build more low-cost housing.

Based on a research conducted by the group, compliance costs and cross subsidies increases the prices of houses by about 10 percent.

“The rising cost of housing could can be reduced if the state and the federal government help to reduce compliance costs. REHDA is aware of the rising cost of housing but developers have no choice but to transfer the compliance costs to buyers,” he said.

“Among the compliance costs and cross subsidies paid by developers to the state for a housing unit are land sub-division, premium, development charges, earthwork approval, landscaping approval, cancellation of interest restriction and contribution for road and drainage plans.”

For the federal government, developers pay about 20 fees such as connecting charges for utility companies, said Khoo, adding that home builders fork out about RM18,000 in compliance costs alone for a house worth RM200,000.

(Source: Property Guru)