Government considers paying low cost home developers

Government considers paying low cost home developers

Government considers paying low cost home developers
KUALA LUMPUR, March 6 — The Housing and Local Government Ministry is mulling over giving subsidy to housing developers to enable them to built better quality and affordable homes in prime locations.

Minister Datuk Seri Ong Ka Chuan said the move was to assist the housing industry to sustain growth amid the global economic slowdown, and also as part of the government’s obligation to provide quality homes for the people.

“This is a ‘win-win situation’ and our ultimate intention is to keep the industry active,” he told reporters after opening the Klang Valley Mapex 2009 property exhibition here today.

Ong said he had discussed the plan with the treasury and was awaiting cabinet approval.

The government would also subsidise developers who were willing to build more spacious low cost homes in strategic location and provide the area with better amenities.

Currently the price of a basic 650 square metres of low cost house is RM42,000 per unit, much lower than the estimated construction cost of about RM60,000.

Ong said the ministry would also develop a mechanism to vet applicants to ensure that only those from the hardcore poor, single parents and the handicapped would get to enjoy the facility.

Currently there are about 500,000 low cost house applicants, he said.

He said the ministry would also discuss with the treasury on the possibility of reducing stamp duties in view of the current economic slowdown.

Stamp duties for houses below RM100,000, above RM100,000 and above RM500,000 are one per cent, two per cent and three per cent respectively. — Bernama

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