Penang questions breached affordable housing price limits

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GEORGE TOWN: The Penang government has questioned Putrajaya’s reason for setting property units at prices more than the affordable housing prices stipulated by the state last December.

State executive councillor for town and country planning and housing, Jagdeep Singh, said the 15 projects, to be developed by federal agencies, Penang Regional Development Authority (Perda) and JKP Sdn Bhd, would also see profits of up to RM149 million. He said the state has set the maximum ceiling price at RM250,000 for units in Seberang Perai and RM400,000 on the island.

However, based on the list of housing prices for the Perda and JKP projects, there were units that were priced as much as RM575,000 in Seberang Perai and RM1.85 million on the island.

Jagdeep said although the state-level Federal Action Council had clarified that the prices were meant to bear the building costs for low-cost projects, he felt that it should instead be set just enough to break even. “This is far higher compared with the affordable housing price set by the Penang government,” Jagdeep said at a press conference at his office in George Town.

“The question is why in several projects of these federal agencies, housing units are priced more than the ceiling set by the Penang government and the federal government itself,” he said.

The affordable housing price under the 1Malaysia People’s Housing Scheme is also set at a maximum of RM400,000, he said. — The Malaysian Insider

This article first appeared in The Edge Financial Daily, on October 8, 2014.