DAP questions RM1.8mil 'affordable houses'
MalaysiaKini.com
Oct 7 2014

The Penang government has urged federal agencies building "affordable houses" in the state to explain the reason for selling some units beyond the ceiling price of RM400,000, with some having a price tag of RM1.8 million.

State executive councillor for housing Jagdeep Singh Deo said the ceiling price for affordable houses is fixed at RM400,000 per unit on the island and RM250,000 on the mainland.

However, Jagdeep said he has learnt that two federal government agencies - Lembaga Kemajuan Wilayah Pulau Pinang (Perda) and JKP Sdn Bhd - are selling some units at a price that is higher than the ceiling price.

He said the price tag for these houses were even more than the prices fixed for units under the PR1Ma project of the federal government.

"Perda and JKP are selling these so-called affordable houses for RM250,000 to RM575,000 on the mainland and from RM400,000 to RM1.8 million on the island," Jagdeep told a press conference today.

"The federal agencies (via the 15 projects by Perda and JKP) would be gaining RM148,989.168 from the sale of the houses," he added.

Jagdeep said the price fixed by the federal agencies differed from the prices of affordable houses built by the Penang government.

For example, prices of affordable houses at Phase 1 Bandar Cassia in Batu Kawan, built by state development arm Penang Development Corporation (PDC), are between RM168,000 (for 900sq ft) and RM200,000 (1,000sq ft) a unit.

He said the applications of those who have applied to purchase 520 units of the houses have been processed by the state housing department.        

Jagdeep noted that the Penang government and PDC are building 22,275 units of affordable homes on the mainland and island for Penangites via a RM500 million fund.

He was responding to Penang Federal Action Council chairperson Zainal Abidin Osman’s claim that the state government had delayed approving the building of 9,4444 units of affordable houses by Perda and JKP Sdn Bhd.

Zainal had sent a letter on Aug 18 to Chief Minister Lim Guan Eng to seek approval for these projects, which Jagdeep said he had responded to on Sept 8.

Details on land status

In his letter, Jagdeep asked Zainal to provide details on the land status (whether purchased or acquired for public use) and the selling prices for the units to be built by Perda and JKP.

Zainal (right) responded to Jagdeep's letter on Sept 30, stating that for projects under Perda - three would be built on purchased land and the remaining four on land which was acquired for public use between 1992 and 1993.

Under JKP, Zainal said, one project would be built on purchased land and seven others on land acquired for public use from 1995 to 2008.

Jagdeep said the state government would consider Zainal's  response before deciding on the approvals for the projects stated by Zainal.

"The projects by Perda and JKP on land acquired for public use will be reviewed seriously by the Penang government," the Dato Keramat assemblyperson said.

"If they are acquired for public use, the federal government should give priority for development of affordable houses and not luxury commercial projects," he added.

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