News: Government Urged To Offer Cross-subsidies

Mar 15, 2019

 

With large property developers finding it hard to offer affordable housing projects, SkyWorld Group Managing Director Ng Thien Phing has called on the government to offer a cross-subsidy scheme by eliminating certain fees to encourage developers to build more affordable homes.

Ng noted that there is a lot of demand for affordable housing. In fact, the company received 17,000 applications for its Sky Awani 1 project, reported Malaysiakini.

READ MORE: Comprehensive guide to Malaysia’s affordable housing schemes

“Developers are keen, but it’s not cost effective (to do so). Only a few companies such as SkyWorld (are doing it),” he said after the topping out ceremony for Sky Awani 2.

SkyWorld was one of the developers that participated in the Rumawip scheme, which was renamed to Residensi Wilayah.

“We urge the government to consider a cross-subsidy scheme, such as abolishing certain fees to help developers offer affordable and quality homes.”

He revealed that developers have to offer units at above RM300,000 in order that it could make a profit under current market conditions.

Units at Sky Awani, most of which measure 800 sq ft, were priced at about RM300,000 each when it was launched in 2016.

Speaking at the event, Federal Territories Minister Khalid Abdul Samad said developers should ensure that future projects under Residensi Wilayah should have a living space of at least 900 sq ft, while keeping prices at about RM300,000.

He hoped developers participating in the scheme would also meet Construction Industry Development Board’s (CIDB) quality assessment system in construction (Qlassic) standards.

 

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Victor Cheong
Senior Property Negotiator
REN: 01078
Ace Realty
victorcheong07@gmail.com
(+60) 16-3288040