Replace rundown PPR flats with affordable homes, says group

 

Older, low-rise PPR flats can be transformed into taller structures, allowing for more efficient use of land, says Master Builders Association past president Finn Choong.

PETALING JAYA: The government should consider tearing down low-density public housing project (PPR) flats and replacing them with more affordable homes, says a former president of a builders’ group.

Finn Chong, a past president of Master Builders Association, said this would save the government land acquisition costs and revitalise urban regions, particularly in densely populated areas like Kuala Lumpur and Penang.

“In Penang alone, there’s a significant amount of underutilised land, estimated to be about one-third of the state.

“These older, low-rise (PPR) buildings can be transformed into taller structures, allowing for more efficient use of land,” he told FMT.

Choong said this urban renewal strategy aligns with the government’s plan to increase the supply of low-cost homes through Program Residensi Rakyat (PRR), with prices expected to be capped at RM60,000 each.

He said the government’s cost estimate of RM300,000 per PPR flat unit is fair provided it handles land costs well.

He also said developers should be further incentivised to take on these projects to make the PRR initiative a success.

Recently, housing and local government minister Nga Kor Ming said each proposed PRR flat would have a minimum 750 sq ft floor space with three bedrooms and two bathrooms. He said the government remains open to ideas aimed at improving the project.

PPR units currently cost RM35,000 in the peninsula and RM42,000 in Sabah and Sarawak, and can also be rented for RM124 a month. To be eligible, families must earn RM3,000 a month or less.

There are 159 PPR projects containing 99,000 housing units nationwide.

In the 2024 federal budget, RM2.47 billion was set aside to build PPR projects this year, government statistics show, with some partially financed by the private sector.

Economist Geoffrey Williams said while PRR is a great idea, it was important to ensure that people had ultimate ownership of their units, so they are motivated to maintain them.

“Without proper incentives for repairs, properties inevitably deteriorate, particularly when landlords neglect maintenance, especially in cases of tenant arrears,” he said.

Williams said without ownership, these PRR neighbourhoods would become rundown, making life difficult for those on low pay with no other choice.

“By offering homes at RM60,000, even those on minimum wage can potentially afford them with loans. This facilitates the redevelopment of rundown neighbourhoods, too,” he said. - FMT