What Was PPAM (Or PPA1M), And What’s Next?
PPA1M, or PPAM, was a government housing scheme designed to provide affordable homes for civil servants and government employees.
You might also have heard it called the 1 Malaysia Civil Servants Housing Programme (PPA1M).
This affordable homes initiative was designed to ensure that low-income and middle-income government servants could afford homes in major urban areas.
It operated by encouraging private developers to construct PPAM developments, which are then subsidised by government.
What Does The Future Hold For PPAM?
Recent announcements put the future of PPAM in doubt, with Housing and Local Government Minister Zuraida Kamaruddin advising of the upcoming merger of all affordable homes initiatives beneath a single banner.
Who Was Eligible For PPAM?
Eligibility for PPAM was set under a strict set of criteria, with priority given to first-time buyers.
- Must be a Malaysian citizen
- Be a government employee or civil servant
- Monthly income below RM10,000
- Pensionable and contracted civil servant may also apply
- Only one successful project per household
- Priority to first-time buyers
Changes in 2018 also made it possible for the children of government pensioners to apply for PPA1M properties.
- Only one applicant per government pensioner
- Properties ranging from RM150,000 to RM300,000
What Properties Did PPAM Apply To?
PPA1M properties were purpose-built units constructed by private developers, financially supported by government funding. They were designed with the following criteria in mind:
- Quality and affordable housing
- Located in major cities
- Developed in areas with high interest by civil servants
- Variety of unit types including landed and high-rise
- Price range from RM100,000 to RM400,00
What Else Do I Need To Know About PPAM?
PPAM was first launched in 2013, and was designed to deliver affordable homes for civil servants and government employees.
That means it came with some limitations to ensure it created the greatest positive impact.
- Limited to one government housing/PPAM home
- No resale for 10 years except to next of kin or with government permission
- 2% deposit required when signing the Sale and Purchase Agreement (SPA)
- Cannot apply for a specific unit or change units once the offer is made
- 2 months to secure financing once offer made
- No renting out your home
The Future Of Affordable Homes Initiatives
There’s no doubt that PPA1M presented an accessible affordable home opportunity for qualifying civil servants.
That opportunity now looks to be combined with the wider opportunities of affordable housing schemes, with the announcement indicating that both PPA1M and PR1MA will operate within a joint national policy.
While the details are so far scarce, it seems that merging affordable housing initiatives is designed to provide clear oversight that helps ensure a more centralised direction for the future.
Whatever reality emerges from the ashes, it’s obvious that affordable homes are still an important priority for Malaysian citizens, and its government too.
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