The National House Buyers Association (HBA) has called for a clearer definition of “affordable housing” in Malaysia, stressing that homes priced as high as RM500,000 should not be considered affordable. Datuk Chang Kim Loong, the HBA’s Honorary Secretary-General, stated that true affordable housing must address the needs of households earning below the median income level, as outlined by a government-recognized affordability index. This news was reported in Business Times.

“A home is more than just a physical asset; it provides long-term financial security. The HBA urges the government to prioritize the people’s housing needs over developers’ interests,” Chang said. He defined affordable housing by three criteria: price range, suitable living space, and accessible location.

• Price Range: Housing should be priced between RM150,000 and RM300,000, distinct from low- and medium-cost housing priced below RM100,000, like People’s Housing Projects (PPR).
• Size and Suitability: A minimum size of 800 sq ft, with at least two bedrooms, ensures these homes are suitable for families.
• Location and Accessibility: Affordable housing should be in areas with reliable public transport links, such as LRT or KTM, and near essential amenities like schools and hospitals.

The HBA praised the government’s 2025 Budget proposals for the housing sector, noting that effective implementation could significantly increase the supply of affordable homes, particularly as Malaysians struggle with rising costs and economic pressures. Chang added that a “Housing Index” would also help standardize affordable housing definitions across states, accommodating varied local economic conditions and making homes truly affordable based on regional incomes.

Establishing a national affordable housing trust

In response to ongoing mismatches between supply and demand, the Real Estate and Housing Developers’ Association (Rehda) recently proposed creating a national affordable housing trust. Datuk Ho Hon Sang, President of Rehda, explained that the trust would focus on building affordable homes in high-demand areas to avoid surplus stock in less-demanding regions. Ho highlighted data from the National Property Information Centre that 28.6% of unsold homes in Q1 2024 were priced below RM300,000, underscoring a location-based mismatch in housing supply.

“Affordability must be aligned with specific demand areas, not a one-size-fits-all approach,” Ho said. He proposed that representatives from the Housing and Local Government Ministry, state authorities, and Rehda form a committee to evaluate where affordable housing is most needed. Developers would contribute a percentage of their gross development value to fund the trust.

Rehda also suggested developers work with banks to offer subsidized loans for affordable housing and urged the government to provide incentives, like discounts on premium charges, development fees, and Improvement Service Funds, to reduce the financial burden on home buyers.

Regional and state variations for affordable housing

Samuel Tan, CEO of Olive Tree Property Consultants, noted that the definition of “affordable housing” should vary by state, given the unique characteristics of each region. “A RM500,000 home may be affordable in the Klang Valley but would be considered a luxury property in states like Kelantan or Perlis,” Tan explained. Localized standards, he argued, would better reflect regional economic conditions and affordability.

Tan also emphasized that price alone should not define affordable housing. “The number of bedrooms, bathrooms, and proximity to public transport and amenities must be considered to provide a livable and functional space for families,” he said.

Program Residensi Rakyat (PRR) raises concerns

The HBA’s Chang expressed concerns regarding Program Residensi Rakyat (PRR), a new initiative included in the 2025 Budget by the Ministry of Housing and Local Government. The budget allocates RM900 million for 48 PRR projects, aiming to house around 17,500 residents by the end of 2025. However, Chang warned that the initiative could impose financial strains on the government, with PRR units projected to cost RM300,000 to build but sold at just RM60,000 each.

Chang pointed out that the current social housing model, PPR, is a rental arrangement meant to help lower-income groups save toward buying their own homes. He suggested that the government follow Johor’s Rumah Iskandar model, which offers a rent-to-own option, allowing qualified tenants to rent initially and buy later.

A sustainable path forward

By setting clear, regional standards for affordable housing, Malaysia can address both the shortfall in truly affordable homes and the regional disparities in housing demand. The HBA and Rehda’s proposals, combined with government initiatives, highlight the importance of a balanced, regional approach to make affordable housing a realistic and sustainable goal for the nation.

The Penang Island City Council (MBPP) has proposed constructing a new administration building at Jalan Sungai Dua, near the Sungai Nibong Bus Terminal (TSN).

MBPP mayor Datuk A. Rajendran said this during the monthly MBPP meeting at City Hall, attended by MBPP councillors, various heads of department, and other important stakeholders.

He said the primary objective of this proposal was to centralise MBPP’s services for residents in both the southwest and northeast districts on the island, while also creating an additional avenue stream for the local council.

“Taxes alone won’t be enough for the local council to provide the best possible services to the people. Hence, we have decided to propose the construction of a new admin building in the said area.

“We are in the process of hiring a consultant for this proposed project to provide technical assistance and carry out necessary studies. Once completed, the council will initiate a Request for Proposals (RFP) for interested parties.

“We will engage architects to present the proposed project design. If all goes well, we hope to start the project, hopefully in 2027,” Rajendran said when met with reporters yesterday.

In addition to the proposed admin building, MBPP has identified three other plots of land in the Sungai Nibong Bus Terminal area for potential development. The total area across these four plots is approximately 9.7 acres.

The proposed building will be developed in phases. Phase One includes the new administration building, while Phases Two and Three will focus on redeveloping MBPP staff quarters and constructing additional commercial spaces.

Rajendran noted that the current MBPP quarters, comprising 120 units, will be demolished and rebuilt to house a larger number of MBPP staff.

Further details on the additional developments in Phases Two and Three are expected to be finalised soon.

Source: Buletin Mutiara

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About Savana @ Utropolis

This is the fourth phase of Paramount Property’s Utropolis development at Batu Kawan. Located along Jalan Cassia Barat 2, adjacent to Sensasi and Sinaran Residences. It is less than 5 minutes’ walking distance to Design Village outlet mall and UOW MALAYSIA KDU Penang University College, with easy access to Penang Second Bridge and North-South Expressway. This development features 522 residential units with 8 levels of car parking podium.

Find out more about Utropolis @ Batu Kawan:

• Phase 1 – Sensasi Commercial & Residential Suites (Completed)
• Phase 2 – Suasana Residential Suites (Completed)
• Phase 3 – Sinaran Avenue & Sinaran Residences (Completed)
• Phase 4 – Savana (On-going)

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The Seberang Perai City Council (MBSP) is taking strict action against landowners who proceed with development projects without obtaining the necessary planning approvals. MBSP Mayor, Dato’ Baderul Amin Abdul Hamid, emphasized that MBSP recently prosecuted a landowner who was operating a car wash facility without proper authorization.

On October 24, 2024, the individual appeared before the Seberang Perai City Council’s Magistrate Court and pleaded guilty to the charges, resulting in a fine of RM15,000.

As a reminder to Seberang Perai residents, MBSP urges all parties to respect city planning regulations and avoid conducting any form of development or property repurposing without prior approval. “Firm action will be taken against any individuals or companies found to be carrying out unauthorized development activities,” Dato’ Baderul Amin stated.

During the same session, MBSP also advised all landowners to adhere to notices and conditions set by the council. The Mayor’s message serves as a warning to potential violators and an assurance to the public that MBSP will continue enforcing compliance to uphold orderly development in Seberang Perai.