Foreign Property News | Posted by Hnin Ei Khin
The government’s plan to build one million units of affordable homes within the next 10 years can be achieved albeit being a tall order, CBRE|WTW managing director Foo Gee Jen (pic) said, citing scarcity of land and private-sector limitations as main concerns.
“While there’s still a lot of land bank in many states, there is a scarcity here [in the Klang Valley]. It would be good if the state governments can offer their land [to meet this target].
If not, it would be a tall order for the government to deliver the target,” Foo told a press briefing on the CBRE|WTW 2019 Asia Pacific Real Estate Market Outlook Report yesterday.
The housing and local government ministry recently announced that it intends to build one million units of affordable homes within the next 10 years (or two election terms) as per the Pakatan Harapan’s manifesto promise to enable more people, especially low-income earners, to be homeowners.
To meet this goal, it aims to build 100,000 units a year beginning this year.
Still, Foo hopes that the current government will not fall short of its target as to what was experienced under the previous Barisan Nasional-led government that had promised to build a million affordable homes in five years.
The previous government achieved less than 20% of its target.
“I do have hope with the new government and that the target is achievable as it is over a 10-year period,” he said.
In March last year, former prime minister Datuk Seri Najib Razak was reported as saying that of the one million homes promised, 139,338 units had been completed, 311,281 were in various stages of construction and the rest were in the planning or pre-approval phase.
Foo also noted that the government’s approach to the building of affordable homes is more private sector-driven, even though many developers have voiced that rising land prices have made it difficult for them to build cheaper homes.
Some have said they have had to raise prices of medium- to higher-ranged homes in order to make up for the lower pricing of affordable homes for the bottom 40% household.
Ref: Property Report
