National Affordable Housing Summit 2015

National Affordable Housing Summit 2015
23 April 2015 | Seri Pacific Hotel, Kuala Lumpur
Spearheading the Affordable Housing supply in Malaysia for a further inclusive nation

 

Affordable Housing is a challenge to Malaysia. The growing need for affordable housing has to be adequately addressed as this presents an opportunity for developers to focus on this much needed growing market. To understand the concept of Affordable housing, we need to understand why the need for cost reduced housing system in Malaysia. Affordable Housing is often compared with low cost housing, although this is not a correct comparison. Generally speaking, affordability is calculated as a percentage of the household income in which loan repayment should not exceed 30% of collective household income. And analyzing this from the perspective of average income per-capita, the household survey carried out in the middle of 2013 identifies RM3,200 as the average median income.

 

First time home buyers were excited to hear that in 2014, the government was to allocate 578 million ringgit to the National Housing Department (JPN) for low cost _ats consisting of 16,473 housing units and to provide 80,000 housing units with an allocation of 1 billion ringgit under affordable housing scheme. During 2015 Budget, the housing loan was increased from RM 80,000 to RM 120,000, which assists a lot more middle and lower middle income earners to purchase their first home. Other than that, The Youth Home Buyer Scheme, a smart partnership between the government, Bank Simpanan Nasional, Employees Provident Fund and Cagamas has been offering 20,000 units on a ‘first come first served basis’ and RM 200 monthly to ease the monthly loan repayment.

 

The lack of adequate affordable housing is due to the lack of suitable land, red tapes approval and obtaining sufficient financing. Excellent land & space management, usage of sustainable construction materials, innovative energy management, connectivity, infrastructure provision and in fact, rehabilitation of land and buildings can make Malaysia’s affordable housing system to the next level. The National Affordable Housing by ASLI & Rei Group of Companies will evaluate the challenges, opportunities and trends in affordable housing in Malaysia.