Occupancy Certificates issue for old government buildings to be resolved
The Local Government and Housing Ministry is currently taking steps to resolve the issue of OC
Experts believe that addressing key challenges and ensuring effective implementation will be crucial for the initiative's success while balancing its broader impact on the property market.
CCO & Associates executive director Sr Chan Wai Seen highlighted the need for supportive financial measures, such as structuring down payments as rental payments, to ease buyers' financial burden.
"Affordable housing should not impose financial strain on buyers. Many low-income households are already struggling with daily expenses, and additional financial commitments could affect their quality of life," Chan told Business Times.
Chan proposed the establishment of a dedicated body to oversee the initiative, ensuring transparency and effective execution.
He added that a dedicated management body is essential to ensure the initiative is carried out efficiently and fairly.
Housing and Local Government Minister Nga Kor Ming said last week that the RM13 billion initiative reflects the unity government's commitment to making homeownership accessible for all citizens.
Chan noted that under the government's guidelines, affordable housing units are expected to be about 800 square feet and come with reasonable facilities.
He stressed the importance of targeting genuine beneficiaries using tools like PADU (Pangkalan Data Utama) and ensuring developments are located in areas with adequate public transport and infrastructure.
Independent market studies should be conducted to assess the suitability of proposed sites, he added.
Dr. Oh Si Eun, principal adviser at the Pacific Research Centre, suggested the initiative could stabilize housing prices in the long term but cautioned about potential impacts on property values in certain segments.
He said that mass low-cost housing may drive down overall property prices, benefiting low-income earners but potentially affecting existing homeowners.
Effective cushioning measures are needed for those impacted, he said.
Kashif Ansari, co-founder and group chief executive officer of Juwai IQI, offered a contrasting perspective, stating that well-managed affordable housing projects generally benefit the housing market without negatively affecting higher-end property values.
"Affordable housing is designed for those who cannot afford more expensive properties, so it does not interfere with the middle and upper tiers of the market," he explained.
