Despite affordable housing schemes, owning a home still a dream

Many working-class people in the Klang Valley are unable to find affordable housing. – The Malaysian Insider file pic, December 27, 2014.

Lorry driver Zainal Yaakob was offered a low cost home from the Selangor Pakatan Rakyat (PR) government. But he had to give it up because he could not make the downpayment for it.

Mohd Rashid Muhammad also got an offer for an affordable home, from the Barisan Nasional (BN) federal government. He also reluctantly gave it up, as it was too far from his workplace in Shah Alam.

The experiences of these two working class Malaysians show that despite the good intentions of the affordable housing schemes by both BN and PR, the houses can still be out of reach for the people they are supposed to help.

It would thus seem that 4 years after they were launched, PR1MA and the Rumah Selangorku programmes are coming up short on their aims of dealing with the housing crisis among low and middle income earners.

Both schemes were launched about the same time in 2011, but Selangor managed to complete its first few projects ahead of the federal government.

In September, Selangor handed owners keys for 124 units of an apartment complex in Bandar Baru Bangi which was built under Rumah Selangorku.

According to state's housing executive councillor (Exco), 136 units have been completed in Bandar Baru Sungai Long, near Cheras, out of a total of 5,473 units being built.

Selangor exco in charge of housing Datuk Iskandar Samad says the state hopes to build 35,000 units of Rumah Selangorku in the next five years. – The Malaysian Insider file pic, December 27, 2014.Selangor's exco for Housing, Building Management and Urban Living, Datuk Iskandar Samad, said the state hopes to build 35,000 Rumah Selangorku units in the next five years.

There are four categories of houses under the Rumah Selangorku programme, ranging from RM42,000 to RM250,000. The different types are targeted at different income bands: those earning below RM3,000, RM6,000 and RM8,000.

Selangor funds these projects through its government-linked companies such as  Selangor State Development Corporation (PKNS) and Permodalan Negeri Selangor Berhad (PNSB). It also sets quotas for private developers to build affordable homes as part of their projects.

So far, the state has approved projects for 13,664 units which are being built by private developers, while GLCs are expected to start projects for 680 units.

On November 24, Iskandar said Selangor's strict rules were to ensure developers build a set number of affordable homes.

To ensure these units are built in areas where there is real demand from the working class, the quotas for private developers are set according to zones.

“This is so that these houses get sold and developers are not burdened,” said Iskandar.

Yet as Zainal’s case shows, even with a RM42,000 price tag, not everyone who makes below RM3,000 can afford to own a home.

“I could not make the down payment because I don’t have much savings,” said Zainal, who supports his wife and two small daughters on a RM1,800 a month salary.

Realising this, Selangor decided to start a rent-to-own programme called Dana-Sel next year, specifically for people like Zainal.

Selangor Menteri Besar Mohamed Azmin Ali said under the programme, urban settlers will be offered low cost houses which they can rent and then eventually own after some years.

“I was forced to give up my first offer. But Selangor realises that there are many cases like mine so that’s why they started this programme,” said Zainal, of the Dana-Sel scheme.

Zainal is hoping to get another affordable Rumah Selangorku unit and qualify for the Dana – Sel scheme.

In the case of the BN government, the first units of its PR1MA projects will only be completed next year.

The first completed project is a 3,196-unit high-rise apartment at Seremban Sentral, Negri Sembilan.

Mohd Rashid received an offer for one of these units.

“I couldn’t take the offer. I go to work in Shah Alam with a motorcycle,” said the 32-year-old who works at a college in Shah Alam.

“If I stayed in Seremban, me and my wife would have to spend a fortune on commuting,” said Rashid.

According to its website, PR1MA has 11 projects in the works for the Klang Valley, where demand for these houses is the highest in the country.

But it is not known when any of them will be ready.

Minister in the Prime Minister's Department Datuk Seri Shahidan Kassin says PR1MA has tried its best to shorten the planning period for its houses. – The Malaysian Insider file pic, December 27, 2014.Minister in the Prime Minister’s Department Datuk Seri Shahidan Kassim said 11,359 units in total are being constructed and expected to be ready by next year.

He said that works to build 22,101 units had also started all over the country.

In Selangor alone, the PR1MA board approved 9,782 units to be built, said Shahidan, who is tasked with overseeing PR1MA.

However, he did not give a time frame when they’ll be ready.

PR1MA, he said, is targetting to build about 500,000 units costing between RM100,000 to RM400,000 by 2018.

Asked why PR1MA still could not finish a single unit despite being launched four years ago, Shahidan said the PR1MA Corporation needed one to two years to get the necessary land approvals.

“PR1MA has tried its best to shorten the planning period as two to three years is too long. Construction of strata homes also takes about two to three years.

“The National Housing Council and state governments have also recently agreed to shorten the approval times for land applications.

“Bear in mind, PR1MA has just started, so the fact that we are already completing 11,359 units is considered quite fast,” said Shahidan.

Meanwhile Rashid continues to hunt for a home that he and his wife might be able to afford in Shah Alam or Klang.

He hopes PR1MA would eventually be able to offer him a unit in Selangor.

“Klang is probably where my wife and I can find a house we can afford. We’re not moving anywhere else as Selangor is where we want to start a family.”

- TMI