Sarawak exempts developers from building affordable homes

Sarawak exempts developers from building affordable homes

Premier Abang Johari Openg says the developers will pay compensation through a housing trust fund instead.

Abang Johari Openg (in black cap) said the state decided to take control of the construction of affordable homes because some developers were not serious in developing such projects. (Bernama pic)
KUCHING:
Private housing developers planning on developing large-scale projects in Sarawak are no longer required to build affordable homes starting from the first quarter of this year, Sarawak premier Abang Johari Openg said.

Instead, he said, developers involved in projects that span 10 acres (4.05ha) or more are required to make compensation through a housing trust fund to be used by the state government for the development of affordable homes on specific project sites.

“We will implement this in the first quarter of 2024. We are amending the housing regulations so that we can build quality affordable homes,” he told reporters after visiting the Sungai Bedaun housing project site today

Previously, state laws required the private sector to allocate 30% of housing schemes, or mixed development projects, for the construction of affordable homes when the developed land area was 10 acres or more.

“We will discuss the payment quantum, that is, how much the developer needs to pay per acre to the state trust fund based on the value of the land and the project’s location.

“For example, if 30% (of their project) equals to 50 low-cost housing units, we will assess the amount to be paid based on market prices,” he said.

Abang Johari said the decision to take control of affordable housing construction was made as some property developers were not serious in developing such projects.

By empowering the state government to oversee the construction of low-cost homes, he hoped to prevent issues such as delays in projects like that of the Sentoria Borneo Samariang Garden, which was supposed to be completed in 2020.

On the Sungai Bedaun housing project, which is Package One of the Darul Hana development project, Abang Johari said it is expected to be fully completed by April and the houses would be available with prices starting at RM99,500 per unit for a living space of 750 sq ft.

“Residents will have the flexibility to extend their homes according to the established standards without requiring approval from the North Kuching City Hall. The state government will pay a deposit of RM10,000, and the remaining amount will be financed through Mutiara Mortgage and Credit,” he said.

Covering almost 19ha and comprising 209 housing units, this project involves families from Kampung Panglima Seman Lama, Kampung Semarang, and Kampung Pulo Ulu in Seberang Hilir, who were selected to purchase homes based on specified criteria.

Abang Johari said similar affordable housing projects would be expanded to various areas in the state, such as Gedong, Kabong, Asajaya, and Santubong and that they too would follow the same model and unit price.

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