Building affordable homes is the way forward for property developers
Penang Local Government, Housing, Town and Country Planning Committee chairman Jagdeep Singh Deo has continued to remind property developers to focus on building affordable homes during this trying period.
“Let us work together. We want the private sector to come together and help the people.
“The Covid-19 has greatly impacted the economy. The way forward for property developers is to build affordable homes. At least you can breathe.
“You can build a million dollar house, but you will take a million days to sell it.
“Let us be realistic. Not during this time,” he said in his speech before presenting the Sena Mas affordable housing offer letters to the eligible recipients at Sena Mas, Tasek Gelugor, today.
Jagdeep congratulated PTL Properties Sdn Bhd for working together with the state in ensuring that the people have comfortable and affordable homes to live in.
“The affordable housing homes, which are priced from RM200,000 each, will come with various facilities,” he said.
Sena Mas is believed to be the first landed, gated and guarded housing development in Penang under the state’s affordable housing scheme.
The project has 338 units of townhouses and comprises two types – Type A (935sq ft) and Type B (1,093sq ft).
Two acres of land have been dedicated for facilities and green areas. Among the facilities to be provided were a multipurpose hall, an aromatic garden, a barbecue pit area, an outdoor gym, and a children’s playground.
The construction works have begun, and the project is set to complete before 2024.
He added that the state has set its target of having 220,000 units of affordable homes (various types) by 2030.
“We have surpassed 120,000 units of various types of affordable homes as of now.
“This is the state government’s effort for the Penangites. We also thank the Penang Housing Board for its effort,” he said.
Source: Buletin Mutiara
This is the only way to stay backward, people will be buying houses and see no appreciation within years to come, material prices skyrocket and labor costs as well.
i guess this guy is encouraging the market to stay low and stay stagnant while the construction sector consisting of 36% of the GDP in Penang alone itself. population growth at 1.2% with massive and promising – uninheritable properties.
look at the rise, with lousy and poor worksmanship with tonnes of defects and incomplete job, probably that is how they want the people to stay backward and substitution will keep happening on building the homes.
@stay backward
Actually, the concept of affordable homes can be a win-win-win policy, but PG state gov is not doing it right,evidently, due to lack of talents in rocket, in which most of the members are actually not very bright and not well educated. I am seriously concerned about the well being of our beloved state moving forward if still run by the same bunch of clowns. Things will be much much worse in the coming years, brave for more hardship PG!
Affordable home is a gamble. You might get some decent one and bad one. Save yourself from being treated as beggars by the PG gov and affordable home developers, upgrade your career till you have bargaining power to buy property without these schemes.
Rocket party has been boasting being PG gov for 10+ years, but still no money to build proper transport infrastructure and need to sell more lands and reclaim. What to do, they know penangites will still pick them as other parties are also rubbish.
put it in a very simple manner
1) just to gain popularity, the announcement of discount of 10% selling price is announced to the people
– Victim (existing purchasers, paying interest and yet property devalued, paying progressive interest and some even worse) , Developer (to Subsidize the materials) due to decrease of Revenue.
2) Overwhelmed units and congestion with lack of appropriate guidelines to ensure a better environment. rather than – outdated guidelines
3) No new development anymore in Penang as you observed within this 5 years, people are moving away from Penang (development). No more opportunity for property investment, yes you may say that It is finally a genuine property market, but you are paying interest every month to the bank knowing your property wont appreciate in 5 years to come.
4) No more jobs, Supplies
Jack, read my name, that solves your equation
Affordable houses is a scam tricking buyers to think they bought houses at a discount. Very often if you calculate price psf for affordable house it will be similar to price psf of a private project. You still have to factor in no. of carparks, facilities, density etc. After considering all these you will notice actually the state gov and developer doesn’t lose any money, only the poor is oppressed.
@slow
What you said is actually very true. A surge in land price was induced by the rocket state gov when plot ratio (higher plot ratio means more can be built on the same piece of land, which makes the land more valuable) was increased drastically after 2008, resulting in an overall market perception of ever increasing home prices, which in turn caused widespread speculative buying that enabled developers (aka rocket cronies) to build and supply unprecedented volume of homes to the market, and in the process, made tonnes of money.
The failure of the state gov to regulate predatory sales tactics (eg. DIBS and the use of unethical sales agents) made the situation worse. Again, crony real estate agents made tonnes of money from there.
Whether the big screw up in policy was by mistake or by design, that should reflect how much rocket has done to PG.
Even up until today in the developments of the so-called “affordable homes”, the state is still working with developers with questionable background with questionable financial sources.
@slow, that is in my mind as well, if you think you are saving money, simply calculate the xx psf again… not to mention you haven’t factor in the cost of land