Johor Reclaims Over 2,000 Affordable Housing Units, Prices Of Rumah Mesra Rakyat Homes Remain Unchanged And, More
27th February – 4th March
The state government of Johor has reclaimed over 2,000 Rumah Sewa Kerajaan (RSK) and people’s housing projects (PPR) unit due to subletting issues.
Meanwhile, Syarikat Perumahan Negara Berhad (SPNB) assured that prices of Rumah Mesra Rakyat (RMR) will remain unchanged despite the 8% hike in Sales and Service Tax (SST).
1. Johor reclaims over 2,000 affordable housing units
The state government of Johor has reclaimed over 2,000 Rumah Sewa Kerajaan (RSK) and people’s housing projects (PPR) units due to subletting issues.
The move comes after the state initiated legalisation and profiling processes in 2022, said Datuk Mohd Jafni Md Shukor, Chairman of the State Housing and Local Government Committee.
Of the 14,500 housing units at 13 PPR and seven RKS, 2,000 were found to have been sublet to other people at significantly higher rents, reported The Star.
As such, the rights of the original tenants were revoked and new lease contracts were offered to the existing tenants. To be eligible, the tenants should meet the requirements which includes having a monthly income of not more than RM3,000.
He underscored the government’s firm stance on subletting, pointing that the housing projects were intended to provide shelter to low-income families.
He explained that the previous tenants may have decided to sublet their units since they have become financially stable.
2. Prices of Rumah Mesra Rakyat homes remain unchanged
Syarikat Perumahan Negara Berhad (SPNB) assured that prices of Rumah Mesra Rakyat (RMR) will remain unchanged despite the 8% hike in Sales and Service Tax (SST).
This comes as RMR projects do not include the consultation aspect, which is a critical element in constructing private developer projects, reported Bernama.
“Other developers may experience price increases as they need to cover consulting service costs, including engineers and architects involved in the new SST rate hike,” said Zahanuddin Kamarudin, Acting Chief Executive Officer of SPNB.
He added that SPNB has instructed contractors to expedite the construction of RMR projects to lower expenses, indirectly helping keep home prices at existing rate.
Since 2020, SPNB has offered RMR homes at RM75,000 per unit, which includes a RM20,000 government subsidy, to the B40 group.
Spanning around 750 sq ft, these homes come with three bedrooms, a kitchen, a living room and two bathrooms.
3. 950 people on Perak’s reserve list for PPR units
About 950 individuals are on the reserve list for People’s Housing Programme (PPR) units in Perak, said the State Housing Committee Chairman Sandrea Ng.
She attributed the long list to the high demand for low-cost homes, reported The Star.
Notably, the state has 16 PPR projects, with 2,876 units.
“To maintain PPR as a transit home to help more people and to shorten waiting times, it has been agreed that the rental rate will be increased each time the contract is renewed every two years,” said Ng.
She revealed that the decision took effect on 1 January 2024.
Ng shared that a task force has been formed by the Perak Housing and Properties Board (LPHP) to look into the issues of unpaid rental.
“When tenants disregard notices sent to them, the task force will hold a face-to-face consultation session,” she said.
She added that this effort led to a collection of around RM1.4 million in arrears in 2023, up from the RM919,000 collected in the previous year.
4. Deputy Prime Minister Zahid wants Bumiputera discounts retained
Deputy Prime Minister Ahmad Zahid Hamidi emphasized the importance of keeping Bumiputera discounts on low-cost and affordable homes to help low-income individuals acquire their own homes.
But while such discounts are crucial to helping those in need, he believe that such discounts should not be extended to middle- or high-income earners, reported Free Malaysia Today.
Zahid made the statement in response to Bursa Malaysia Chairman Abdul Wahid Omar’s proposal to abolish discounts for Bumiputeras purchasing luxury homes. Wahid suggested using the revenue from scrapping such discount to support those in the low-income group to buy homes.
Meanwhile, Zahid shared that the resolutions at the Bumiputera economic congress, which covered various aspects related to the welfare of the Bumiputera community, would be reviewed by a secretariat before implementation.
He added that a permanent secretariat, under the Bumiputera Economic Council that is chaired by Prime Minister Anwar Ibrahim, will be established immediately to oversee the resolutions’ implementation.
5. Cautiously optimistic outlook on Malaysia’s property market
Most experts in the property industry hold a cautiously optimistic outlook on Malaysia’s property market this year, according to Tang Chee Meng, COO of Henry Butcher Real Estate Sdn Bhd.
He noted that the residential market is growing at a slower pace due to internal and external challenges facing the country, such as the Ukraine-Russia war, the Israel-Hamas war and China’s slow economic recovery, reported The Sun.
He also pointed to the mismatch of supply and demand in the residential property segment.
With this, Tang underscored the importance for developers to consider important factors to ensure their project remain competitive without contributing to the local oversupply issue.
He urged developers to innovate and consider incorporating facilities catering to the rising trend of work-from-home and electric vehicle ownership. Developers should also look into the growing interest for smart homes, said Tang.
On the office segment, Tang noted that while occupancy rates surprisingly increased in 2023 due to improved business sentiments, location remains a key factor in terms of performance.
Therefore, some areas may witness stable occupancy rates, while oversupply in locations such as Klang Valley may lead to lower occupancy rates this year.
6. Terengganu gets RM187.45 million allocation from KPKT
For this year, a total of RM187.45 million has been set aside by the Housing and Local Government Ministry (KPKT) for development projects in Terengganu.
This represents a 23.74% increase from last year’s RM151.49 million allocation, reported Bernama.
“This increase clearly demonstrates the Madani Government’s commitment to the development of Terengganu through approved development allocations that encompass various agencies under KPKT,” said KPKT Minister Nga Kor Ming
He also revealed that KPKT will continue the ‘Sentuhan Kasih’ programme within the state, which includes the RM70.03 million reconstruction of Pasar Payang, the RM17 million development of Kuala Kerteh Public Park as well as the implementation of the Safe City Programme (PBS).
Under the Safe City Programme for 2024, allocations of RM500,000 each have been extended to the Marang District Council, Besut District Council and Kuala Terengganu City Council.
Aimed at improving public city perceptions, the programme is focused on creating an environment that is free from crime threats by installing closed-circuit television cameras and providing secure motorcycle parking.
7. Bank Rakyat fosters home ownership with Carnival Rumah Impian initiative
Bank Rakyat showed its commitment to promote home ownership, especially among those buying their first homes, through its Carnival Rumah Impian initiative.
Datuk Dr. Mohammad Hanis Osman, Bank Rakyat’s Chief Executive Officer, underscored the importance of the event for individuals, particularly those considering to buy their dream homes.
Aside from offering various affordable housing options, Bank Rakyat also introduced attractive promotions and deals during the carnival, reported the New Straits Times.
Mohammad Hanis noted that home buyers benefitted from reduced profit rates as well as refinancing options targeted at easing their monthly financial burdens.
Last year’s carnival attracted significant participation from buyers. For its second edition, the 2024 carnival featured 10 prominent real estate developers, including Astrum Ampang Sdn Bhd, Syarikat Perumahan Negara Bhd and Medan Prestasi Sdn Bhd (MK Land Bhd).
The four-day event was held at the Menara Kembar Bank Rakyat in Kuala Lumpur.
