Soaring property prices could bury DAP

Middle and low-income earning Malays and Indians feel like they are being 'bombed out' of Penang as a result of spiralling housing costs.

GEORGE TOWN: Two Malay men, while walking to their car after a movie, were overheard expressing their frustrations on the most pressing issue in Penang today – property prices.

“It’s difficult to run a business and live in Penang today. Rental is so high. Housing price also so high. Previously, under BN [Barisan Nasional], we can afford to buy a decent landed home. Now forget it. We can’t secure a housing loan with our salary,” said one man.

To which the other replied: “Yeah, people like us can’t afford to buy a landed property in Penang anymore. The price is ridiculous. The DAP wants to turn Penang, especially the island, into a rich man’s area. It wants to chase out locals like us and bring in rich outsiders.”

Both concurred that in the next general election they “may vote for BN”.

The conversation is not an isolated one in Penang where rumblings of discontent over spiralling property prices on the island are rapidly gaining momentum.

Many local residents, especially middle and low-income earning Malays and Indians feel that they are being “bombed out with ringgit” from their home state.

Their grouses are valid.

Single-storey terrace houses with three rooms that used to cost between RM200,000 and RM300,000 before 2008 are now being marketed for between RM450,000 and RM650,000.

Previously, landed homes above RM450,000 in Batu Maung, Bayan Lepas and Balik Pulau are now being offered at unthinkable prices.

A landed property in Air Itam that was priced at RM300,000 before the 2008 general election, was recently sold for RM1 million.

This is happening in Penang under Chief Minister Lim Guan Eng’s Pakatan Rakyat administration.

Pakatan yet to justify cost rise

Strategically, if BN campaigners were to play up the issue, it will surely be the end of DAP in the coming general election.

Until today neither Lim nor any of his comrades-in-arm, or for that matter DAP’s cyber-troopers, have justified the escalating property prices with valid reasons.

The cybertroopers have only thus far routinely cited the supply demand factor and high cost of building materials as reasons for the inflated property prices.

But those reasons were always there even before Pakatan ruled Penang.

Moreover, if it is true that the supply-demand forces were the main factor, one can only blame the state government.

It should have established a legal mechanism to prevent unscrupulous developers and speculators from manipulating property prices for profiteering purposes at the expense of the poor lay public.

Aren’t land matters very much under the state powers?

Shouldn’t any government of the day, especially the self-righteous DAP, uphold the universal principle of land and housing rights being fundamental human rights issues, and not business commodities?

At a recent function, a DAP politician was heard saying that poor Penangites would have to move to the mainland in future because the island would be exclusively for the rich.

It’s heartbreaking to think that this is happening under the DAP-led state government.

DAP is supposed to uphold socialist ideals and the party still belongs to the international socialist community.

Violation of rights

Ironically Lim, who is now the party secretary-general, was once the socialist DAP Youth chief.

It’s bad governance when you make a mockery of natural justice and when a socialist party fails to provide affordable homes for rightful citizens. It’s a serious violation of human rights and the birthright of Penang-born citizens to own a comfortable home in their home state.

The state government recently announced an ambitious RM500 million affordable home programme in the state.

The Penang Development Corporation will handle the project to build 19,172 affordable housing units on state land, especially in Jalan SP Chelliah on the island and in Taman Cassia on mainland Batu Kawan.

The price per unit would range from RM72,000 to RM400,000.

The exorbitant price ceiling prompted BN coordinator for Batu Kawan parliamentary constituency, A Mohan, to question Lim’s government sincerity to provide affordable houses to laymen.

“Middle and lower-income Penangites cannot afford these houses. They surely cannot secure loans.

“It’s clear that the state government is not interested in providing affordable homes,” he said.

Three-fold increase in prices

Nibong Tebal MP Tan Tee Beng blamed the inflated property prices on the Pakatan government’s policies.

He cited the three-fold hikes in developers’ contributions for not building low-medium cost (LMC) units in respective housing schemes, and development charges for the increase in build-up plot ratio as being the main causes.

Under the urban housing policy, a developer must pay contributions to the local government for not building the pre-conditioned 30% units of LMC in a housing development scheme.

The LMC contribution charge has leapt to RM120,000 per unit, three times more than the previous RM40,000 per unit under BN.

For an increase in housing build-up plot ratio rate, a developer has to pay RM15psf for the extra units. Previously it was RM5psf.

The rate for commercial development is now RM21psf. It was RM7psf under BN.

Like Tan, many blamed the increased charges on escalating property prices because developers would add on the extra cost to their property sale prices.

Property prices had increased from RM150,000 per unit – under BN – to RM400,000 now under Pakatan.

Like food and clothings, shelter is a basic need and fundamental rights of citizens.

As a socialist party, DAP should uphold these principles at all costs in line with Lim’s government theme of competency, accountability and transparency (CAT).

Pakatan backer, Parti Sosialis Malaysia (PSM), would confirm this.

So, the question is who’s to be blamed for inflating property prices in Penang?

“Blame it solely on Pakatan state government,” insisted Tan.

One would find it difficult to disagree with Tan.