Posted in iProperty on 23 Nov 2017.
November 22, KUALA LUMPUR – The government’s Budget 2018 announcement on building 210,000 units of PR1MA homes priced at RM250,000 and below was in acknowledgement of the unaffordability of houses under the current scheme.
Finance Minister II Datuk Seri Johari Abdul Ghani said in tabling the budget last month, PM Najib Razak had announced that RM1.5 billion had been set aside for the construction of PR1MA homes. On Monday, the Sun reported that Perbadanan PR1MA Malaysia, which is in various stages of building 141,661 units of PR1MA homes, have only managed to sell 11,944 units as many in the country are unable to afford them.
Speaking on the sidelines of the Malaysian Institute of Economic Research’s National Economic Outlook 2018-19 Conference yesterday, Johari said PR1MA’s current scheme is an initiative where prices of affordable houses was set at RM300,000 and below.
While prices for PR1MA homes range between RM100,000 and RM400,000 currently, Bank Negara Malaysia (BNM) noted that houses priced above RM250,000 are beyond the means of the majority of buyers who qualify for affordable homes.
“BNM told us (there were) a lot of rejections for people applying for loans because (the houses) are above RM250,000.
In a statement yesterday, PR1MA clarified that 12,640 units, or more than 50% of the 25,132 units open for sale as at Nov 15, have been sold. It said that before it could sell its units, it must first obtain approval from the authorities and as such, not all the units under construction can be sold.
About 141,161 units are under various stages of construction. PR1MA reiterated that its projects are well-received in key locations, citing the example of PR1MA @ Jalan Jubilee in Bukit Bintang, which was oversubscribed 27 times.
A total of 224 units, or 42% of 542 units up for sale, were sold within three days.
“This affordable pricing has allowed Malaysians to own a home in a prime location, right in the heart of Kuala Lumpur City Centre.”
– THE SUN