Review Low Cost Housing Ceiling Price

REHDA Malaysia welcomes the announcement made by the Finance Minister, Dato’ Seri Najib Tun Razak on the additional allocation of RM100 million for the Rumah Mesra Rakyat Scheme. The Association views the additional budget as a proactive move by the Government to enhance home ownership among the lower income group.

REHDA President Datuk Ng Seing Liong, JP said, “REHDA is happy to note a more active participation of the public sector in the provision of affordable housing to the rakyat via Syarikat Perumahan Negara Berhad (SPNB). We are particularly encouraged that the Government is cognizant of the fact that building material prices and other construction costs have soared and it now costs more to build a 700-900 sq ft low cost and low medium cost houses.”

Datuk Ng added in view of escalating development costs, it is timely that the Government considers a revision of low cost house prices from its current ceiling of RM42,000 per unit to RM60,000 per unit nationwide and RM75,000 per unit for urban areas of the Klang Valley, Johor and Penang. He also highlighted that in contrast to the Rumah Mesra Rakyat Scheme where SPNB constructs low cost houses on land belonging to the buyers, private sector developers are providing land and completed buildings at a heavily subsidised price of RM42,000 maximum.

“Ideally, the responsibility of providing affordable housing to the rakyat should revert back to the Government so that the private sector can focus on meeting the demand for market driven products. Meanwhile, the industry hopes that the burden of cross subsidisation of low cost houses can be eased by an upward price revision,” he said.

“We urge the Government to review low cost ceiling price immediately. The ceiling price for low cost housing was last reviewed in 1998. Since then, the production costs have gone up significantly”, Datuk Ng added.

Issued by:

Datuk Ng Seing Liong, PJN, JP
黄腾亮局绅
PRESIDENT

REAL ESTATE AND HOUSING DEVELOPERS’ ASSOCIATION MALAYSIA