‘More efforts necessary towards enhancing housing affordability’
Local property developers are calling for more concerted efforts to be put in towards enhancing housing affordability, particularly for the first-time buyers.
In commenting on this subject, Radium Properties director and shareholder Dato Richard Wee emphasises the roles played by industry associations such as Sarawak Housing and Real Estate Developers Association (Sheda) as well as the government in spearheading initiatives meant to align property prices with the financial capacity of buyers from the younger segments of the population.
“For me, I think the prices of the houses should be more affordable, especially for young graduates.
“I’m hoping that Sheda and the government should be the ones to take the lead in ensuring that property prices are ‘reachable’,” he told reporters when met at the opening of the Lotus Residence show units by Radium Properties here yesterday.
Wee noted the persistent challenge of ‘hefty downpayments’, as well as the substantial increase in property prices over the years.
He recalled a time when a semi-detached unit was priced at a modest RM145,000, versus today’s market where such a property could go beyond the RM1 million tag.
According to him, the 80 per cent downpayment requirement today has led to many of the younger generation to ask for help from their parents.
“If not, you’d choose to save, and by the time that you’re done saving, the price would go up again; it’s like the ‘dog chasing its tail’.
“So, if the government could come up with some flexible way of assisting (to cover) the 20 per cent, that would be good,” he said.
Meanwhile, another director and shareholder of Radium Properties, Raymond Tay, attributed soaring property prices to increased labour cost, construction expenses and rising prices of raw materials.
He observed a trend towards high-rise buildings, noting that apartments and condominiums priced between RM400,000 and RM500,000 per unit, had become ‘more accessible’ to a broader segment of the population.
“But I think such property type would be less and less in the town areas. Owning landed properties is a good investment in years to come.
“So, our policies point to us wanting to build houses with fewer problems, (and) using good materials, for the people. At least when you move in, you would not complain,” he said.
In this respect, Tay also emphasised the importance of transparency.
“We use good-quality materials; even if you see the ceiling, we use metal.
“We don’t want it to drop. So that’s how we see it. So, for this house, we hope the buyers could really appreciate it.
“We share the details with all the agents, and let them inform the potential buyers.
“So, this is what you can look for. Then when they want to buy, they can compare so that they can make the right decision,” he said.
Acknowledging the challenges surrounding the issue of affordability, Tay said even the intermediate units in the town areas could cost around RM1 million, making it difficult for first-time buyers.
“So, is it possible for the government to help? Otherwise, you have to depend on your parents to come up with the money for the downpayment.
“Some of our friends want to buy, but the RM100,000 downpayment is a problem – unless the bank could also help increase (the loan approval) up to 95 per cent,” he added.
Lotus Residence’s latest double-storey terraced showhouses by Radium Properties are now available for public viewing.
Currently under construction, the development is set to reach completion by the fourth quarter of this year, with the unit (standard and corner) price ranging from RM708,000 to RM933,000.
It is informed that for now, about 60 per cent of the 33 units have been sold.
To schedule a visit to the show units or to know more details about the project, contact Affluence Properties’ representative Benny Kong on 013-800 9308, The Roof Realty’s representative Kelvin Chong on 010-982 9983, or IQI Realty’s representative Nelly Tan on 017-820 2298.