Penang Property Sector Ranked Second Best Performing In Southeast Asia, Selangor On The Lookout For ‘White Knight’ For Morib Housing Project And, More
21st November – 27th November
Penang’s real estate sector, which is still in the recovery phase following the COVID-19 pandemic, emerged as the second-best performing city within the Southeast Asia, said Datuk Seri S. Sundarajoo, Chairman of the State Housing and Environment Committee.
Meanwhile, the Selangor government is looking for solutions to revive a housing project meant for former estate workers of Ladang Dusun Durian in Morib, which had been left abandoned since 2006.
1. Penang property sector ranked second best performing in Southeast Asia
Penang’s real estate sector, which is still in the recovery phase following the COVID-19 pandemic, emerged as the second-best performing city within the Southeast Asia, Datuk Seri S. Sundarajoo, Chairman of the State Housing and Environment Committee told the Penang State Legislative Assembly.
He pointed that based on Knight Frank’s Asia-Pacific Residential Index for the first half of 2023, home prices in Penang rose 5.78% during such period – making it Southeast Asia’s second top performing city.
Singapore tops the list as it saw house prices increase 7.97%, while Bangkok took third place with 4.36% hike in prices.
Sundarajoo noted that the hike in average household income has allowed Penang citizens to acquire their own homes even as prices rose above the median property price, reported Bernama.
He pointed that the increase in home prices in Penang “is in line with rise in household income”.
2. Selangor on the lookout for ‘white knight’ for Morib housing project
The Selangor government is looking for solutions to revive a housing project meant for former estate workers of Ladang Dusun Durian in Morib, which had been left abandoned since 2006.
About 109 former estate workers had been affected. The project’s contractor had proposed a 300% increase in house prices, which had been rejected by the buyers, who only agreed to a 15% hike, reported The Star.
The state expressed no objection to the price hike, provided all 109 former estate workers approved it. However, the parties could not arrive at an agreement.
“So the state suggested that the contractor take the legal route as both parties were also tied to the clauses stated in the power of attorney (PA) letter, and the sale and purchase agreement,” said Borhan Aman Shah, Chairman of the Selangor Housing and Culture Committee, adding that only 30% of the buyers verbally agreed to the increase.
With this, the state is exploring other options to complete the project.
Borhan shared that the state is looking to cancel the power of attorney to expedite the revival and partner with a ‘white knight’ developer to complete the housing project.
3. National Housing Department to lower number of sick projects to 3% by 2030
The National Housing Department aims to reduce the number of problematic or sick and abandoned housing projects in Malaysia to 3% by 2030.
Datuk K.N Jayaselan, Director-general of National Housing Department, shared that the department has made various efforts to resolve the issue of sick and abandoned projects, reported Bernama.
To date, there are 117 projects that are categorised as abandoned and 497 as sick.
“For the future, we want to ensure that housing projects that fall into the sick or abandoned category can be reduced to 3% in 2030, compared with almost 15% currently,” said Jayaselan.
He revealed that the department will focus on reducing the number of sick projects first. This will be done by restoring such projects via a task force chaired by Deputy Local Government Development Minister, Akmal Nasrullah Nasir.
To address the issue, monthly meetings will be conducted, with the aim of reviving a sick project every month.
4. New rent-to-own scheme uses free contra units
Selangor Housing and Property Board (LPHS) is in the process of finalising a new rent-to-own initiative, known as SeMiSel, aimed at offering free contra units from developers to eligible individuals.
Borhan Aman Shah, Chairman of the State Housing and Culture Committee, explained that the free units resulted from a state incentive promoting the construction of affordable housing under Rumah MBI and Rumah Selangorku Harapan schemes, reported The Star.
The incentive sees developers handing over free units to the state in exchange for an exemption on mandatory number of Rumah Selangorku Type A units to be built.
Totalling 1,576, the contra units will be used in programmes aimed at helping the B40 group.
Of these, 707 units are ready for rental, while 869 are either under construction or undergoing installation of basic amenities such as fans, grilles and lights, said Borhan.
He encouraged those interested, particularly from the rural areas, to submit their application via the LPHS system.
5. Penang on track to achieve 2030 housing target
Penang aims to deliver 220,000 affordable housing units by 2030, strategically spread across its five districts.
Datuk Seri Sundarajoo Somu, Chairman of the State Housing and Environment Committee, noted that an average of four people live an affordable housing unit. As such, the 220,000-unit target would accommodate 880,000 individuals or almost half of the state’s population.
He revealed that more than 150,000 affordable homes are currently at various stages of development, leaving 70,000 units out of its target, reported The Star.
Sundarajoo also shared that the state is set to introduce a new housing category priced at RM100,000 for those with monthly household income of RM3,500 to RM5,000.
He also revealed plans to revise some policies relating to the density and plot ratio of projects on the Penang mainland.
However, he pointed that traffic management is one of the factors that the state would consider when approving developments.
“The state government doesn’t want to further burden the infrastructure in certain areas…That will not help the industries or the people,” he said.
“We want Penang to be a liveable state that is clean, green and safe,” added Sundarajoo.
6. Non-bumiputra buyers can appeal penalty
Non-bumiputra buyers who unknowingly bought housing units set aside for bumiputra in Selangor can appeal to have the 7% bumiputra discount and 5% penalty waived.
However, the developer or liquidator must submit application for waiver of fees to the Selangor Housing and Property Board (LPHS), which will turn it over to the State Bumiputra Quota Appeals Committee, reported The Star.
Borhan Aman Shah, Chairman of the State Housing and Culture Committee, assured that the state government and LPHS will support the affected buyers in filing their appeals.
He shared that the state would retain its mechanism in allocating bumiputra quota and urged developers to adhere to such quotas.
He pointed that developers who oversell bumiputra units to non-bumiputra buyers could face fines and be blacklisted.
“To ensure this does not happen in the future, LPHS will conduct a meeting with stakeholders to study the matter and find a solution,” he said.
