SYARIKAT Perumahan Negara Bhd (SPNB), entrusted by the government to construct low-cost houses, will source for the right locations and funding for such housing needs of the people, Deputy Housing and Local Government Minister Datuk Peter Chin said.

''Once the Cabinet approves its role of supervising the construction and completion of low cost houses as announced in the recent budget, SPNB will be able to implement its responsibility to relieve housing developers of their obligation to build 30% of low-cost houses in their schemes,'' he told reporters after the opening of LBS Bina Group Bhd Property Fair 2003 in Sunway Pyramid on Friday.

Under Budget 2004, developers were given the choice to either undertake the 30% construction of low-cost houses or designate the duty to SPNB.

Chin said the quantum of levy to be contributed by developers and method of payment to SPNB would be worked out by the Finance Ministry after consultations with the Real Estate and Housing Developers Association (Rehda).

''With SPNB having a free hand to decide on the locations to build such houses and the number of units to build depending on demand, the problem of mismatch, wrong locations and poor demand will be rectified.

Datuk Peter Chin (centre) flanked by LBS executive director Joey Lim (left) and Datuk Lim Hock San (right).

''All in all this should be an improvement over the present arrangement for the construction and delivery of low cost housing to the target groups.''

Chin said SPNB would be able to provide recreational facilities like community centres, modern bus terminals, food courts and playgrounds to the low-income earners.

''This cannot be done if the low-cost projects are scattered in different areas, so we plan to bring them together in one area and provide them with better amenities.''

Private developers have complained of losses after the building of low-cost houses and sometimes they were unable to find buyers for their projects.

In his speech earlier, Chin said it was important for the property industry to have its own quality benchmark to ensure developers produced high quality products for today's discerning buyers.

''In the last two decades, there has been a dramatic transformation in the industry's performance with more importance being placed on aesthetical and quality finished products.''

He said despite the tightening of controlling and monitoring mechanisms with recent amendments to the Housing Development Act 1976, ''some form of self-regulation should prevail in future to ensure proper compliance to existing code of practice and standards.''

Chin said the government's economic stimulus package in May had spurred a much more active property sector with new launches and completed projects enjoying brisk sales, especially in the Klang Valley, and hopefully the new measures in Budget 2004 will further spur its growth.

LBS group managing director Datuk Lim Hock San said more than 4,000 property units worth some RM500mil were up for sale at the company's second property fair to be held until Sept 28.

''We have aimed to achieve sales of at least RM50mil, especially of our affordable units of below RM180,000, which qualify for various government incentives.''