KPKT to unveil new public housing model, Development of Malay reserve land to help Bumiputeras own homes in urban areas and more
5th March – 11th March
The Housing and Local Government Ministry (KPKT) is introducing a new public housing model, the Program Residensi Rakyat (PRR).
Meanwhile, the development of Malay reserve land, especially for building more affordable homes, provide more opportunities for Bumiputera individuals to own homes, particularly within the city centre area.
1. KPKT to unveil new public housing model
The Housing and Local Government Ministry (KPKT) is introducing a new public housing mode, the Program Residensi Rakyat (PRR).
KPKT Minister Nga Kor Ming said the PPR will be well-integrated, sustainable and liveable, boasting features such as green spaces, community centre and commercial viability, reported Bernama.
Each unit will have a construction cost of RM300,000, with the government subsidising a portion of the price, making them accessible to the low-income group.
With this, units at the new PPR will be sold for RM60,000, of which around RM10,000 to RM15,000 will be set aside for maintenance and sinking funds.
The PPR units will have a minimum size of 750 sq ft and will come with three bedrooms and two bathrooms.
“There will also be a moratorium whereby in 10 years, you cannot sell the PRR unit, as we do not want irresponsible parties to take advantage of our social housing because this is a privilege for you to be afforded a heavy subsidy,” said Nga.
KPKT will emphasise connectivity via transit-oriented development (TOD) to reduce reliance on vehicles. Nga shared that the PPR will also integrate green technology, reducing energy costs by 30%.
2. Development of Malay reserve land to help Bumiputeras own homes in urban areas
The development of Malay reserve land, especially for building more affordable homes, provides more opportunities for Bumiputera individuals to own homes, particularly within the city centre area.
Professor Dr Mansor Mohd Noor from Universiti Kebangsaan Malaysia’s Institute of Ethnic Studies underscored the need for comprehensive planning, including the construction of affordable homes, commercial zones and proper infrastructure to ensure a conducive living environment, reported Bernama.
Prime Minister Datuk Seri Anwar Ibrahim recently announced the MADANI Housing Scheme, which aims to develop 2,500 units of affordable homes on Malay reserve land at an expedited rate.
He also assured the government land, including in Bandar Malaysia, will remain under Malay ownership to ensure the availability of affordable homes for Malays within the urban areas.
To ensure the successful implementation of the plan, Mandor hope the government would restrict the granting of building permits to those with proven track record. This is to prevent misuse by individuals looking for opportunities in the Bumiputera community facilities.
3. Over 26,000 housing units completed under Residensi Wilayah initiaitve
A total of 26,154 housing units spread across 43 projects have been completed under the Residensi Wilayah initiative, revealed Dr Zaliha Mustafa, Minister in the Prime Minister’s Department (Federal Territories).
Another 23 projects comprising 23,441 housing units are currently under construction and expected to be completed from 2024 until 2027, she said during a key handover ceremony to Residensi Wilayah SkyAwani 5 buyers.
Led by the Federal Territories Department, Residensi Wilayah is aimed at providing affordable housing throughout the Federal Territories, particularly for low- to middle-income earners, reported Bernama.
By collaborating with housing developers and using cross-subsidy methods, the government offers homes with a minimum area of 800 sq ft at below RM300,000 per unit.
One of the projects under the initiative, SkyAwani 5 is the first affordable housing project to feature electric vehicle (EV) charging facilities.
It also set a new benchmark in the affordable housing sector by integrating over 20 facilities including a swimming pool, gymnasium, coworking space and game room.
4. KL-Singapore HSR concept proposal evaluation may take two months
The evaluation of the seven Concept Proposals for the Kuala Lumpur-Singapore High-Speed Rail (HSR) project may take two months to complete, said the Transport Ministry.
It shared that the MyHSR Corporation Sdn Bhd (MyHSR Corp) is currently evaluating the proposals, with the results subject to government approval to shortlist the consortia that would participate in the Request for Proposal (RFP), which is the next stage, reported Bernama.
In response to Lim Lip Eng’s (PH-Kepong) question, the ministry clarified that the government will not guarantee any loans for the RM100 billion project.
It explained that all firms/consortiums have been informed that the project will be implemented via the Private Fund Investment (PFI), without any government fund injection.
The ministry also revealed that the costing details relevant to the construction of five Light Rail Transit 3 (LRT3) stations, which are set to be resumed, are yet to be finalised.
The project, which is still being fine-tuned, has received an additional RM4.7 billion allocation for the restoration of its scope.
5. Malaysia a potential heavyweight in luxury real estate sector
Malaysia has the potential to be a significant player in the luxury real estate sector, said Enoch Khoo, Knight Frank Property Hub Malaysia’s Managing Director.
He pointed that market conditions has improved significantly compared to a year ago, with expected reductions in interest rates and inflation largely in check, reported the New Straits Times.
Khoo also underscored the robustness of the labour market, the limited forced selling, stable house prices due to restricted housebuilding and the impact of pandemic-related savings on certain advanced economies.
In Knight Frank’s latest Wealth Report, last year’s prime residential prices exceeded expectations, with 80 of the 100 monitored markets registering flat or positive annual growth. This shows the resilience of luxury housing markets despite the successive interest rate increases.
The Asia-Pacific region played a significant role as it contributed an overall growth rate of 3.8%, reaffirming the potential of Malaysia as a key player in the luxury real estate sector.
Based on the Knight Frank report, luxury home prices increased 3.1% on average in 2023, with the Asia-Pacific region outperforming the Americas, Europe, the Middle East and Africa.
