SHAH ALAM, Feb 2 — The Selangor State Development Corporation (PKNS) has opened its tender to turnkey contractors to bid for its affordable housing development projects, a step to manage its cash flow and borrowings.
General Manager Azlan Md Alifiah said the ‘Request for Proposal’ (RFP) exercise was expected in June for its upcoming 7,500 units of ‘Rumah Selangorku’ affordable housing, to be built over the next five to eight years.
“Turnkey contractors will not only construct the houses but would also be able to finance the project. This way, we do not need to slow down operations even though the current economic situation is challenging.
“We will also be able to optimise cost, limit our liabilities and utilise our resources compared with the conventional contracting scheme,” he told Bernama.
Azlan said the total gross development value for the 7,500 units was estimated at RM13.5 billion, of which between RM500 million and RM600 million would be subsidised by PKNS.
He said the remaining 2,500 affordable houses would be built via conventional means, as it needed to ensure that Bumiputera contractors could also participate in the project.
Since 2012, about 1,600 buyers have benefitted from the affordable housing scheme in Selangor, with prices ranging from RM42,000 for a built-up of 700 sq ft and up to RM250,000 for a 1,000 sq ft unit.
“Given the data in terms of demand by the Selangor Housing and Property Board, we are focusing more on type C and D, which ranges from RM150,000 and RM250,000, respectively.
“However, we will still allocate about 10% of the type A and B (700-750 sq ft) to fulfill the demand from eligible applicants, depending on the location of the projects,” he said.
In terms of helping potential buyers to own a house, Azlan said the state government has allocated RM20 million to assist them with the initial deposit of 10% and another RM10 million for the rent-and-own scheme.
For 2016, 431 affordable houses, valued at RM75 million, are expected to be completed in Kota Puteri, Gombak (198 units), U12 Desa Alam, Petaling (104 units) and Antara Gapi, Hulu Selangor (129 units).
“We are also expecting to launch our first high-rise affordable apartments comprising 500 units homes in a mixed development within the Selangor Science Park 2 in Sepang.
“To be launched in April, construction of the project is expected to commence early 2017,” Azlan said.
He urged the low-income wage earners to take up the opportunity to own these houses as they were priced below market price of between RM180,000 and RM220,000. They should actually retail for about RM400,000 each.
“Therefore, I urge them to register with the Selangor Housing and Property Board online at http://ehartanah.lphs.gov.my, so that they too, can own a house,” said Azlan.