Penang CM: Low-cost housing must be affordable
30/03/2007 The Sun By Regina William

PENANG (March 30, 2007): The state government has to consider the lower income group's ability to purchase low and low-medium cost housing before agreeing to the Real Estate and Housing Developers Association (Rehda)'s request for a price increase.

Penang Chief Minister Tan Sri Dr Koh Tsu Koon said it would be pointless if the target group could not afford to buy these units.

Rehda has filed an appeal with the Housing and Local Government Ministry for a 20% increase in the ceiling prices of these units which are now priced at RM45,000 for a low-cost unit and RM75,000 for a low-medium cost unit.

Its chairman Datuk Jerry Chan Fook Sing, blaming rising construction costs and land prices, wants the price to be revised to RM55,000 and RM90,000 respectively.

"We understand about the rising costs but developers do have cross subsidy when they build low cost and low-medium cost housing as they compensate the cost by building other units.

"We will have to study and look at this proposal carefully and I want to emphasise that affordability for the target group will be our major consideration," Koh told reporters today.

"This does not mean we will not consider the proposal but it will not be easy for us to agree," he added.

Koh said state housing committee chairman Syed Amerudin Syed Ahmad has been asked to look into the matter.