KUALA LUMPUR, November 1— A property investment consultant suggested the government to consider imposing a 30% affordable housing quota in every residential development project instead of low-cost housing.
Rahim & Co International Sdn Bhd Executive Chairman Tan Sri Abdul Rahim Abdul Rahman said the move would trigger more developers to build affordable houses as they would still be able to cover the costs involved in such projects.
“This is also in line with market demand which is to cater to the needs of those earning RM3,000 and below, and can only afford houses with a price tag of up to RM150,000,” he told reporters on the sidelines of a one-day seminar entitled ‘The Malaysian Property Market: Opportunities Amidst Uncertainties’ here today.
At present, the government’s policy stated that developers must allocate 30% of their new residential development for low-cost housing.
“If we have successfully met the 30% low-cost houses requirement all these years, why can’t the developers provide the 30% quota for affordable houses instead? The government must enforce this and no developer should be exempted,” Abdul Rahim added.
He also pointed out that the developers could still make money from the remaining 70% of their project.
Simultaneously, the government must ensure the allocated affordable houses must be built in urban areas, and not 10 miles from the city centre, he said.
“The project must be nearer to workplaces,” he added.
Abdul Rahim said in the United Kingdom, council houses or affordable units were built in the same building as that of normal residential units but with different entrances.
Meanwhile, the seminar, organised by Rahim & Co Research Sdn Bhd, a subsidiary of Rahim & Co International, was to discuss the challenging economic environment, as well as key property sectors, the property sector’s performance and the 2017 Budget impact.