Caveat on Prima homes

The Star, Saturday July 7, 2012

By LOH FOON FONG
foonfong@thestar.com.my

(From URL: http://thestar.com.my/news/story.asp?file=/2012/7/7/nation/11606657&sec=nation)

KUALA LUMPUR: The Government is unlikely to allow 1Malaysia Housing Programme (Prima) homes to be re-sold at market prices after the 10-year moratorium.

Syarikat Perumahan Negara Bhd (SPNB) managing director Prof Datuk Dr Kamarul Rashdan Salleh said the Government might buy back the units if owners decide to sell them after the tenth year.

“They (owners) cannot sell it in the open market. I think the Government will enforce that,” he said after the “Affordable Housing: A Fact or Fiction?” panel discussion during the 3rd Annual Affordable Housing Projects conference on Wednesday.

Dr Kamarul said the Government was still contemplating all options.

On Monday, Housing and Local Government Minister Datuk Seri Chor Chee Heung said that the Government was using unused federal land to build 42,078 affordable homes for families who earned less than RM5,000.

The units, which cost between RM150,000 and RM300,000, would be built in 20 locations in the Klang Valley, Rawang and Seremban.

He also said that while the owners would be given the units at a lower price, they would not enjoy the appreciation of prices as compared to those buying non-subsidised properties.

The discussion moderator, Australia's Housing Choices international adviser and former chief executive officer Michael Lennon said there was a need for a clear national policy.

In a question-and-answer session, Surbana International Consultants Pte Ltd director (Strategy and Branding) Ng Beng Eng said that governments should spearhead effective intervention efforts for affordable homes and the private sector could later be roped in.