PR1MA housing projects deemed timely

THE need to promote affordable housing under the Perumahan Rakyat 1Malaysia (PR1MA) is considered timely, given escalating property prices that do not commensurate with salary increments in the country, say industry experts.

“It is addressing a very neglected area in the housing market,” says Malaysian Institute of Estate Agents (MIEA) deputy president Siva Shanker.

“Today, more and more people, especially since property prices have shot up about 30% over the last two years, are finding it difficult to afford property,” he adds.

According to a survey conducted in 2009, about 850,000 people or 35% of people polled were not home-owners.

Siva noted that there was still plenty of landed properties in prime land within the Klang Valley that average wage-earners cannot afford.

“You can actually find single-storey terrace houses in Puchong for RM450,000. But to the average wage-earner, this is considered unaffordable. And for the below-average wage earner, there’s no chance at all to buy these properties.”

MIEA president Nixon Paul says buyers looking for affordable homes should not be too choosy.

“It’s the same everywhere in the world. The further the houses are from the city, the cheaper they will be. So it’s unrealistic to believe that you can buy houses in the city that are affordable. Those that make noise about it tend to be more choosy,” he says.

PR1MA is a government programme to promote greater home ownership, especially among middle-income earners, by providing affordable residential properties in major cities nationwide. Under the scheme, some 80,000 homes will be built in the country.

According to the PR1MA website, its aims are to plan, develop, construct and maintain affordable lifestyle housing for middle-income households in key urban centres. The website defines middle-income as a monthly household (husband and wife) income of between RM2,500 and RM7,500.

It says the homes will be allocated through an open balloting process. Selection of house units by the successful buyer will be based on the balloting sequence.

A 10-year moratorium will be imposed, during which the property cannot be sold or transferred to another party without prior approval from PR1MA. The houses must also be owner occupied.

Among the PR1MA developments are the Nusantara PR1MA in Bandar Nusajaya (Johor), PR1MA Penang, Seremban Utara, Seremban 2, Rasah and Senawang (Negri Sembilan).

It was recently reported that the Nusantara PR1MA project was oversubscribed by six times.

Nusantara PR1MA is a joint-venture project between Denia Development as the developer and UEM Land Holdings Bhd as the landowner, while PR1MA lends support for the facilitation fund provided by Unit Kerjasama Awam Swasta and would manage the balloting process.

With a starting price of RM199,000 for an intermediate unit, the Nusantara PR1MA affordable homes were open for application on Dec 13. The development offers two types of four-room double-storey terrace homes measuring 18ft x 65ft offering a built-up area from 1,384 sq ft.

The development is targeted to be completed and ready in 2015.

National House Buyers Association (HBA) secretary-general Chang Kim Loong says he is supportive of the PR1MA scheme, though he feels disappointed with its implementation.

“HBA questions why it is not regulated through the current legislation, namely the Housing Development (Control & Licensing) Act, 1966. Thus, there is no standard sale and purchase agreement and aggrieved buyers cannot seek redress through the Housing Tribunal.

“Developers also need not apply for a developer’s licence and sales and advertising permits.”

Chang also questions why there is a need to develop the properties via a joint venture with private developers.

“Private developers are profit-oriented and that will add to another layer of costs. PR1MA should be a developer itself and not just an administrative body.” - The Star