Cheap homes near LRT lines: Is it possible?

PETALING JAYA: Property expert Ernest Cheong has cast doubt on Perbadanan PR1MA Malaysia’s ability to build affordable houses on pieces of land along LRT routes.

Commenting on a statement by PR1MA chief executive officer Abdul Mutalib Alias, he told FMT it didn’t seem possible that houses built on such land could be sold off at prices deemed “affordable” to middle-income and low-income earners.

A recent Bernama report quoted Abdul Mutalib as saying that PR1MA would be acquiring land at locations such as Cempaka, Pandan Jaya, Pandan Indah, Titiwangsa, Sentul, New Town PJ, Jelatek, Kinrara and Bandar Puteri and planned to build affordable houses on them.

Cheong, a veteran property surveyor, said the cost of acquiring such land from the LRT concessionaires would make it impossible for houses built on them to be sold at affordable prices.

He referred to EPF statistics which state that 89% of Malaysians earn less than RM5,000 a month and said this meant an affordable home should not cost more than RM250,000. A housing loan of RM250,000 would mean a monthly repayment of RM1,500, he pointed out.

“The cost of buying the land is at least RM300,000 for each unit of housing,” he said.

“If the cost of land alone is way above the ceiling price for affordable housing, then how do you intend to build affordable houses?”

He called for an explanation from PR1MA. -FMT