Rehda president Datuk Ho Hon Sang.
KUALA LUMPUR: The Real Estate and Housing Developers’ Association (Rehda) Malaysia expects more targeted solutions rather than a one-shoe-fits-all approach to meeting affordable housing needs.
President Datuk Ho Hon Sang said although there are mandatory requirements which vary from state to state, the challenges lie in supply-demand mismatch.
“We are committed to providing affordable housing but the focus should be on the right location.
“Some areas require more such units, others less,” he said in a statement following Prime Minister Datuk Seri Anwar Ibrahim’s call for a Madani housing concept to meet civil servants and B40 and M40 housing needs.
According to the National Property Information Centre’s latest report, 28.6% of completed unsold housing in Malaysia in the first quarter of 2024 (1Q24) were priced below RM300,000. Ho said another major challenge is the rising costs.
The Rehda Property Industry Survey Second Half 2023 and Market Outlook for 2024 released in March 2024 showed that the average rise in the cost of doing business was about 15% in 2H23 versus 13% in 2H22.
He reiterated that developers cross-subsidise affordable housing, which raises the price of free market units to keep the price of affordable housing below the cost of construction.
“The suggested requirement, whereby a full block or two need to be made into Madani housing instead of a set percentage, will naturally cause a further increase in free market prices for those not eligible for affordable housing,” Ho said.
This includes the M40 group whose income is higher than the eligible criteria threshold, he said. — Bernama
