The Penang state housing board’s first affordable housing project will be built in Bayan Baru, offering 1,267 units with built-ups from 700 sq ft to 850 sq ft.
According to Housing, Local Government and Town and Country Planning Committee Chairman Jagdeep Singh Deo, the project will feature 1,014 affordable homes and 253 low- and medium-cost units.
The affordable housing units will measure 850 sq ft each and priced at RM270,000, while the 700 sq ft low medium-cost units will be offered at RM72,500 each, reported Malay Mail.
Aside from the affordable housing component, the project will also feature a three-storey commercial block with 21 units.
The development will occupy a 7.6-acre site in Bukit Gedung, and will come with various facilities such as a children’s playground, swimming pool, jacuzzi, gymnasium and a study room.
“This is the very first project under the state housing board and we want to realise this project as soon as possible,” said Jagdeep as quoted by Malay Mail.
Construction works for the project is set to begin next year, and is expected to be completed by 2025.
On the state’s goal of building 220 units of affordable homes, Jagdeep shared that the state now has 119,116 affordable housing units, or 54.1% of the state’s target.
Of these, 38,149 units have already been completed, 18,519 units are still under construction, while 62,448 units are under planning.
Moreover, 26,616 of the 119,116 units are low-cost units that are priced at RM42,000 each, 30,159 are low medium-cost units offered at RM72,500 each and 62,341 are affordable housing units at RM270,000 each.
Jagdeep revealed that a 10% discount is also offered for all housing units across the board, as part of Penang’s homeownership campaign, which is extended until June next year.
“Under the buyer-oriented initiative, the ceiling price for affordable housing units in Penang have been reduced to RM270,000 per unit on the island and RM180,000 on the mainland for units measuring a minimum of 850 sq feet,” he said.
The policy is aimed to encourage homebuyers to acquire their first homes at affordable prices.
“As an incentive to developers to build more affordable housing units, the state has approved the guideline for developers to build 120 units per acre of low medium-cost housing on the island,” he said.
Jagdeep noted that the long waiting list for low medium-cost and low-cost housing indicates that the need to optimise land use, particularly on the island.
With this, the state now allows developers to raise the density for medium- and low-cost housing projects to a plot ratio of up to four – which is twice of what could originally be built by developers.