Dearer medium-cost houses

The Star 24/11/2006 By IAN MCINTYRE

TANAH MERAH: Prices of low medium-cost housing units built by Syarikat Perumahan Negara Bhd (SPNB) now cost between 15% and 37.5% more.

SPNB, which announced the new prices of the houses under the Mesra family housing scheme yesterday, has attributed it to rising construction costs.

The price for a 1,000 sq ft unit landed property in the peninsula has increased 15% from RM40,000 to RM46,000.

On islands off the peninsula, the price has been increased 37.5% from RM40,000 to RM55,000.

To alleviate the burden on housebuyers, SPNB has extended the loan repayment period from 22 years to 26 years, with monthly instalment remaining at RM100.

SPNB chairman Datuk Azian Osman said the new prices, effective from September, were still affordable to most eligible buyers.

He added that the fuel price increase and other factors had contributed to rising costs and there was no alternative but to raise house prices.

The scheme is restricted to those earning RM1,000 and below.

Of the 7,144 applications nationwide, 2,039 have been approved.

Azian also announced that under the 9th Malaysia Plan, 470,000 housing units would be built for the hardcore poor as part of the Government’s poverty eradication drive.

He was speaking to newsmen after state Umno liaison committee chairman Datuk Seri Annuar Musa and Tanah Merah MP Shaari Hassan handed the keys to five Taman Desa Melati houses to the new owners.

The project is the first abandoned housing project in Kelantan to be revived by SPNB.

To date, SPNB has revived 65 abandoned housing projects in the country.