The Johor state government will continue to maintain its policy of 40% affordable housing units in each housing project despite the sluggish property market.
“This is a state policy for each housing project which exceeds five acres where developers need to build 40% affordable houses (below RM150,000 per unit) of the total housing units. Developers who do not adhere to the policy need to pay RM40,000 for each unit (affordable houses) to the government,” Mentri Besar Datuk Seri Mohamed Khaled Nordin told reporters after officiating the 2015 affordable houses expo and re-delineation of four local authorities in Pasir Gudang here today.
He said Johor had recorded 90,000 registered applicants for affordable house to date, with 60,000 units of affordable housing units to be completed by the end of 2019.
“Affordable houses are highly subsidised as we try to reduce the number of people they can’t afford to own a house,” he added.
In order to help more applicants to get housing loans, the state government is cooperating with Ambank Islamic Bank to launch a RM300 million affordable housing loan fund next year.
Mohamed Khaled said the state government hopes to see 1Malaysia People’s Housing Programme (PR1MA) building more medium priced house in the state, and provide facilities as rent and buy a house scheme.
Meanwhile, he said the re-delineation of four local authorities will take effect on Jan 1.
Mohamed Khaled said the re-delineation exercise, which started in 2007, will see the total area of Johor Baru City Council increasing to 38,310.21ha compared to its current 21,551.4ha.
The Pasir Gudang Municipal Council will increase from 29,459.9ha to 31,732.24ha.
However, the Kulai Municipal Council will be reduced from 74,697ha to 73,623.65ha and Central Johor Baru Municipal Council from 56,071.7ha to 38,113.9ha.
“The re-delineation exercise will increase the efficiency of delivery system of the local authorities,” Mohamed Khaled added.