THE STAR. 19TH JUNE: State authorities should consider alienating land parcels at discounted or nominal prices to incentivise developers to build affordable homes, says a property expert.
KGV International Property Consultants (M) Sdn Bhd director Samuel Tan noted that property developers, being profit-driven entities, cannot be made to develop properties at a loss.
However, Tan noted that this would not be a simple issue to resolve, as land matters are under the purview of individual states,
“Nevertheless, in view of the importance of the rakyat’s well-being at stake (especially the B40 and some M40), it is time for all parties to take a holistic approach to address the issue.
“The government, developers and individual buyers need to play their part to address the issue.”
Additionally, Tan said there were too many agencies, departments and initiatives involved in the development of affordable housing in Malaysia.
“We should seriously consider starting a centralised body to oversee, regulate and implement policies, coordinate and collaborate with other related agencies and industry players as well as monitor the demand, pricing and quality of the products.”
Tan emphasised that the proposal to have a centralised body is not new. “We do hope that parties should take up some responsibilities and not just pay lip service.
“If we get the affordable housing issue right, we would be able to resolve many social dilemmas, mitigate a lot of dissatisfaction and instil a sense of belonging especially among those that cannot afford a home.”
Tan cited Singapore’s Housing and Development Board as a possible guide, should Malaysia decide to set up a centralised body to address the subject of affordable housing.
Centre for Market Education chief executive officer Carmelo Ferlito believes there are too many stringent requirements when it comes to developing affordable housing.
“There are too many strict requirements for low-cost developments, for instance, a minimum size.
“This should be avoided in order to facilitate the interaction between supply and demand, taking into account the location and size factors.”
Additionally, Ferlito believes that “disruptive entrepreneurship” will play a key role in developing new technologies for making housing developments cheaper from the cost side.