Penang To Ban Low-Cost Home Rental To Foreigners, Selangor Built 40,000 Affordable Housing Units In Five Years And, More

26 Sep 2023

19th September – 25th September

The state government of Penang plans to prohibit owners of low-cost homes from renting out their units to foreign workers.

Meanwhile, Selangor has built 40,000 units of affordable homes since 2018, with another 5,000 units expected to be completed by end-2023.


1. Penang to ban low-cost home rental to foreigners

The state government of Penang plans to prohibit owners of low-cost homes from renting out their units to foreign workers.

In fact, the Penang Housing Board (LPNPP) is working with the local councils to draft a bill that would curb such rental practice, reported Free Malaysia Today.

“It won’t take too long because I think we should not allow people to rent out (the low-cost units), especially to foreigners, because it defeats the whole purpose,” said S Sundarajoo, Chairman of the State Housing and Environment Committee.

“We (the state government) are subsidising every unit and giving these Malaysians the units, but they are renting them to foreigners,” he stated, adding that it is unfair to other residents.

Under the law, Penang could take back the houses from the owners and give them to other deserving Penangites.

Sundarajoo also revealed plans to create a centralised labour quarters for migrant workers so that they no longer have to rent low-cost housing units.


2. Selangor built 40,000 affordable housing units in five years

Malaysia Home Prices To Increase 5-20% Before Year-End, Selangor To Offer 76,000 Affordable Homes To B40 Group And More

Selangor has built 40,000 units of affordable homes since 2018, with another 5,000 units expected to be completed by end-2023.

Menteri Besar Datuk Seri Amirudin Shari said the Local Government Development Ministry (KPKT) has recognised Selangor as the champion state in constructing affordable homes, reported Bernama.

He said the state will build more housing units by 2025 to 2026.

Meanwhile, Suhaimi Kasdon, Deputy Chief Executive Officer of Selangor State Development Corporation (PKNS), shared that PKNS has partnered with Rexpoint Resources Sdn Bhd, a unit of Melati Ehsan Group, in 2017 to build houses under the Pangsapuri Selangorku@Seri Temenggung project.

“It demonstrates our commitment to empowering the state’s economy and assisting the people in building a better life,” he said.


3. Penang to introduce special rental housing scheme

A special rental housing scheme for single youths and young families will be built at the People’s Housing Project (PPR) within Kota Giam, Jelutong.

Datuk Seri S Sundarajoo, Chairman of Penang Housing and Environment Committee, said the Ministry of Local Government Development (KPKT) will develop the 500-unit project on a 0.81ha site through an allocation of RM100 million from KPKT’s Sentuhan Kasih Programme.

He revealed that the project comprises a 45-storey block of one-room studio units spanning 500 sq ft and a 44-storey tower of three-room units measuring 700 sq ft, reported Bernama.

The studio units will be offered to single youths and the three-room units to young married couples.

Construction works for the project is set to start soon and is expected to take up to 36 months.

“The building design is already in place, while the policies and terms of supply for the units will be submitted to the state authority (PBT) for approval,” said Sundarajoo.


4. Property value of Johor’ sick, abandoned housing projects at RM1 billion

new beautiful buildings under construction stand on a background of beautiful sky

Johor saw the property value of sick and abandoned housing projects which have been or to be completed in 2022, 2023 and 2024 stand at around RM1 billion.

State Housing and Local Government Committee Chairman Datuk Mohd Jafni Md Shukor said the state completed six sick housing projects, with 1,073 units and a property value of RM260.75 million, in 2022 and 2023, reported the New Straits Times.

Another abandoned project is also set to obtain its Certificate of Completion and Compliance (CCC) and conduct key handover by October.

The state eyes to complete one abandoned and five sick housing projects, with 1,776 units and total property value of RM682.66 million in 2024 via the Abandoned Project Monitoring Committee.

The Abandoned Project Monitoring Committee consists of 16 local authorities, the Johor State Housing Development Corporation and technical agencies.


5. Homeowners advised against rushing renovation process

36509563 - project of construction and renovation house

Homeowners have been advised to check the legitimacy of the contractors before hiring them to renovate their property, said Oliver Wee Hiang Chyn, President of Master Builders Association Malaysia.

He also warned against rushing the renovation process, particularly if the quotation appears to be unreasonably low.

“The (contractor) has to come up with some drawings or sketches at least and (then) tell you how much they (intend to) charge,” said Wee, adding that homeowners should also have a written agreement always.

Notably, victims of renovation scams came forward to expose contractors who have been preying on unsuspecting individuals.

The contractors typically use social media to showcase alluring renovation projects, luring victims to seek quotations for their dream house even without formal agreements. However, problems arise after payments are made and work starts, reported Free Malaysia Today.

Seputeh MP Teresa Kok revealed that four victims came forward, claiming that the same contractor, whom they found on Instagram, scammed them.

She noted that while the victims have made a police report, the matter cannot be investigated as a commercial crime due to lack of a formal agreement.


6. Nine sick PR1MA projects completed

Of the 22 PR1MA housing projects nationwide that were identified as sick, nine have already been completed as of July 31.

The nine projects, which involve 6,406 units, were completed after the establishment of the sick and abandoned private housing project task force early this year, said Akmal Nasrullah Mohd Nasir, Deputy Minister of the Local Government Development (KPKT).

He revealed that the remaining projects, involving 9,528 PR1MA units, are targeted to be completed within two years or before end-2024, reported Bernama.

He also shared that two of the three PR1MA projects in Melaka are now 90% complete.

With this, the Klebang Residence Project 2 and Melaka Tengah Residence Project 2are expected to be completed in Q1 2024, while the Bukit Katil Residency Project will be completed by end-2024.

The minister said PR1MA will pay about RM6 million in liquidated ascertained damages (LAD) in stages to the 273 buyers of Klebang 2 Residency project.

About RM70,000 in LAD will also be paid to 10 buyers of Bukit Katil Residency project.


7. Property overhang situation improved in 1H 2023

The overhang situation in Malaysia has improved in the first half of 2023, with the number of unsold units dropping 5.3% to 26,286 units worth RM18.3 billion, according to the National Property Information Centre (NAPIC).

Condominium/apartment units accounted for almost 58% of the residential overhang, while Johor remained to have the highest housing overhang with 4,717 units. It is followed by Selangor, which has 4,307 unsold units, reported the New Straits Times.

KGV International Property Consultants Executive Director Sr Samuel Tan said the decline indicated that developers are making more efforts to clear their unsold stocks.

He noted that the serviced apartment segment also saw total overhang volume decline by 6.2%, while total value fell by 5.3%.

While these are encouraging signs, he pointed that 65.7% of the serviced apartment overhang are priced from RM500,000 to RM1 million. As such, he called on developers to be cautious in building within these price range if there is no demand.

“Another reassuring factor is that the unsold and unbuilt portion is 34.3%. If the response is negative, developers may choose not to develop them. This will prevent the service apartment sector’s overhang from worsening,” said Tan.


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