GEORGE TOWN: A way to reduce the cost of building low-cost housing is to reopen quarries to supply the materials required, said Penang Housing Committee chairman Datuk Seri Sundarajoo Somu.
"Reopening the quarries can help reduce the construction cost.
"This will reduce the burden of providing affordable housing.
"Reopening the quarries here will help reduce material cost rather than sourcing them," he said responding to a question by Zulkifli Bakar (PN- Penanti) at the state legislative assembly in George Town on Wednesday (Nov 22).
Zulkifli asked how the cost of building low-cost housing could be reduced in the state.
Earlier, Sundarajoo said the residential property prices here have increased in line with the increase in average household income.
"The increase in property prices reflects the recovery of the housing and property industry in Penang after the Covid-19 pandemic.
“The average increase in household incomes in Penang will allow Penangites to own homes even though the property prices are higher than the median price,” he said in his reply to Muhammad Fauzi Yusoff (PN- Sungai Dua)
Muhammad Fauzi had asked the state government about its plans to help Penangites buy their own homes.
He claimed Penang property prices are ranked second most expensive in Southeast Asia with an average residential property price of RM330,000 – which is higher than the median price of RM234,072.
Sundarajoo said the residential prices in Penang increased by 5.78% in the first half of this year (2023) adding that the state is the second best performing city in South-East Asia.
"Based on Knight Frank Asia-Pacific’s residential review index for the first half of 2023, Singapore recorded an increase of 7.97%, followed by Bangkok with an increase by 4.36%.
"Penang’s home ownership campaign introduced in June 2021 has effectively spurred the industry.
“In this policy, the maximum prices for affordable housing was capped at RM270,000 on the island and RM225,000 on the mainland,” he said.
He said the ratio of housing price at RM270,000 to the average income of Penangites at RM6,502 is at 3.4 which is a positive trend for home ownership as compared to RM300,000 which is a ratio of 3.9.
He said the ceiling price of affordable housing in Penang is still controlled at RM300,000 under the state’s housing policy to boost and enhance the sale of affordable housing.
