SHAH ALAM, 1 Sept: Housing developers have been advised to take the opportunity to increase affordable housing projects due to the uncertain economic condition and the depreciation of the ringgit.
The Selangor Housing and Property Board (LPHS) Executive Director, Norzaton Aini Mohd Kassim, said that the proposal is also because the demand for such houses is expected to increase compared to market prices because the people are more cautious in spending.
“People should be careful when the ringgit is falling and in economic uncertainty. The property market price may also be affected by this factor.
“We can look at the real estate market prices. There are may ads on property for sale or for rent, but the people are cautious about renting at high prices due to economic uncertainty. They know that property also involves speculation where the price increases 40 to 50 percent and some also reaching 100 percent.
“Most market price homes built are 50 to 70 percent of the project total. The need for affordable homes is at 60 percent because it has high demand despite market price speculations,” she said when contacted by Selangor Kini.
She said that hopefully, housing developers can continue activities to develop property projects by building more affordable housing that already high demand in the way involved.
Norzaton said that the falling demand for market prices to some extent can affect the ability of developers to build affordable house because the profit margin for a market price project is high and can be used to accommodate the development of affordable housing projects.
NS
