Meeting housing needs of lower income group
NST 15/2/2004
Shahrum Sayuthi
JOHOR BARU, Feb 14:
Johor’s “Projek Rumah Rakyat” has dramatically reversed the housing supply and demand situation in the State with developers now forced to pay more heed to the needs of the lower income group.
This, in fact, was one of the foremost goals of Menteri Besar Datuk Abdul Ghani Othman since assuming office in 1995.
He made it a priority of his administration that concerted efforts be made to ensure everyone will have the opportunity to own a house. In the corridors of Bukit Tuimbalan (the State Secretariat), the battle cry was: "A roof over the head for everyone. One family one house".
Ghani began by ordering a comprehensive study of the housing situation in the State. At the time, developers paid more attention to the upper end of the market and neglected the needs of the lower income group.
It was this lopsided situation that led to the birth of Projek Rumah Rakyat — one of the biggest housing projects in the country.
The target was ambitious — the completion within five years of 140,000 low and medium-cost units with a market value of RM3.7 billion by 32 property development firms. To realise this objective, stringent conditions were imposed on property development. At least 40 per cent of all projects for residential development had to be allocated for low and medium-cost housing.
And at least 10 per cent of all housing acreage had to be reserved for recreational needs.
In no time, the Menteri Besar's actions had an impact on the market. Property prices dropped by as much as 20 per cent in prime areas of Johor Baru, and by as much as 30 per cent in the suburbs. Rentals also dipped accordingly.
Today, 10 years on, Projek Rumah Rakyat has not only achieved its target but served to lift the living standards of the poor.
While some of these public housing projects were carried out by the State Government, others were done in association with the National Housing Department, Housing and Local Government Ministry and Syarikat Perumahan Negara Bhd.
Under the Eighth Malaysia Plan, for instance, a total of 15,000 housing units were built in Johor Baru, Muar, Batu Pahat and Segamat.
In addition, houses for rent were also built, like the one in Pasir Pelangi, Johor Baru, involving the construction of 960 units, costing RM77 million, including RM20 million for land reclamation.
Other major projects are in Kempas Permai (2,250 units costing RM123.8 million), Sri Stulang (1,500 units — RM100 million) and Tebrau (2,000 units — RM107 million). An additional 1,500 units are being built in Kampung Setanggi in Johor Baru.
Of the completed and delivered units, most are located in Johor Baru with 4,492 units, followed by Mukim Linau, Batu Pahat (400), Jorak, Muar (330) and Mukim Chaah, Segamat (160).
The cost of development of these public housing units is being borne jointly by the State which is responsible for land and the Federal Government which provides the funding.
On completion, the houses are offered to eligible purchasers at either RM25,000, RM28,000, RM30,000 or RM35,000 depending on lot size and built-up area.
Proceeds from the sales of these units go into the "Public Housing Project Revolving Fund" for use in future projects.
To ensure comfortable living space, each unit has a minimum of 650 square feet of built-up space spread over three bedrooms, a living room, a kitchen and separate bathroom and toilet.
Those built in Johor Baru and the bigger towns were mostly five-storey walk-up flats, while terrace houses are the norm in smaller towns where land is cheaper.
A host of public facilities and amenities are also provided in these public housing schemes — multipurpose hall, surau, kindergarten, grocery shops, children's playground and recreational areas.
As for rental units, some 50,000 homes will be built over the next five years, of which 7,991 units are now under construction.
Squatters are given priority in the allocation of rental units, although others are also eligible provided they have lived in Johor for at least 10 years and with income not exceeding RM1,200 a month. |
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