PR1MA house prices can be lowered if land is free

PR1MA house prices can be lowered if land is free

Houses offered under the 1Malaysia People's Housing (PR1MA) programme can be made cheaper, if only state governments agree to provide the land for free, according to Urban Well-being, Housing and Local Government Minister Datuk Abdul Rahman Dahlan. “If the land is provided free of charge, of course, house prices can be lowered,” he said, noting that land accounts for one of the highest cost in housing development.

Over the next five years, the government intends to build 500,000 affordable houses under PR1MA nationwide, with prices ranging from RM150,000 to RM400,000.

In MUAR, the government will work with state governments to buy land for housing projects in a bid to minimise construction cost, said Datuk Dr Abdul Latif Ahmad, Chairman of Syarikat Perumahan Negara Berhad (SPNB).

Notably, land takes up 30 percent of housing cost while 20 percent is accounted for the cost of infrastructure development.

He further noted that house prices fluctuate due to construction material costs; thus, the cooperation of state governments “in land acquisition is vital to reduce the cost of building affordable housing.”

Over at Johor Bahru, Pertubuhan Sukarelawan Peguam Malaysia (SukaGuam) offered to help buyers of abandoned housing projects.

Victimised house buyers can ask for help from SukaGuam at its office in Menara Ansar or at its booth at the Johor Property Carnival by end-November, said Johor Housing and Local Government Committee chairman Datuk Abdul Latiff Bandi.

“SukaGuam charges a minimal fee based on cases. I have received complaints that while housing projects stalled, developers are sleeping peacefully,” he added.

Farah Wahida, Editor of PropertyGuru