By September 21, 2013

PR1MA homes open to second-home buyers

PR1MA homes open to second-home buyers

This is another good news for second-home buyers. Since the introduction of 1Malaysia People’s Housing Programme (PR1MA), we have been made known that the PR1MA is only available for first time home buyers.  This has been confirmed by the Deputy Finance Minister Datuk Ahmad Maslan.

“While the establishment of PR1MA was to enable first-time buyers to own homes, there will be certain phases of the projects made available to second home buyers as well,” he told a press conference here yesterday, after opening the Real Estate & Housing Developers’ Association’s (Rehda) Real Estate CEO Forum in partnership with Credit Suisse.

“We have been informed that PR1MA will use government-owned lands in strategic locations including Kuala Lumpur, Malacca, Johor Baru, Kota Baru, Kuantan and Sabah (to build affordable houses), but that doesn’t necessarily mean it is confined to that,” Ahmad added.

At a recent closed door PropertyGuru Developers’ Forum, one of the issues highlighted was the flaw in the affordable house scheme as the participating property developers felt that opening PR1MA to second home buyers would not serve its main purpose of helping first-time buyers to own homes.

On this, Rehda deputy president Datuk Fateh Iskandar Mohamed Mansor said only in certain locations where the take-up rate of PR1MA homes is slow, PR1MA homes will be made available to second home buyers, while the priority will remain for first-time buyers.

“Even then, there must be proper justification such as (to cater for) a bigger family, then only the second home buyers are allowed to purchase PR1MA homes,” he added.

Under PR1MA, the federal government has committed to roll out 500,000 units of affordable homes by 2018.

“By the end of this year, we are targeting to build 80,000 units of houses under the PR1MA programme. We aim to build 105,000 units of house every year, hoping to hit the mark of 500,000 units of house within five years,” Ahmad said.

Later on the sidelines of the forum, Rehda patron and past president Tan Sri Eddy Chen Lok Loi told SunBiz that the lacklustre interest among first-time buyers to buy PR1MA homes was due to it being built “far away from the Klang Valley”, hence the opening up of these units to second home buyers.

However, Chen attributed the major obstacles blocking PR1MA Corp Malaysia’s move to address the demand for affordable houses to a lack of land and the housing projects they undertake are not being subsidised by the government.

“In a way, I empathise with their (PR1MA Corp Malaysia’s) situation. Just like any other developers, they don’t have enough land and the government doesn’t provide any subsidy to them. So it’s not easy for them to provide sufficient number of affordable houses at break even level,” he said.

There are also plenty of federal land in Selangor that are frozen at the moment due to the deadlock between the state and federal governments.

Chen also urged people not to politicise the affordable housing issue as it will defeat the purpose to expedite the implementation of PR1MA.

via : TheSun

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