4 Housing (Un)affordability: Reality and Challenges from the Property Developers’ Perspective
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Chee Hung Foo
Abstract
Affordable housing remains a critical concern in Malaysia. This article examines the challenges of providing affordable housing within the Malaysian context from the private developers’ perspective, focusing on the prevalent private sector-led crosssubsidy model. Drawing lessons from Singapore’s Housing and Development Board (HDB) model, an alternative approach is proposed. The suggested model emphasises a government-driven, sustainable affordable housing ecosystem. It introduces a contribution in lieu system where private developers contribute a percentage of the Gross Development Value (GDV) for high-end housing projects to an “Affordable Housing Contribution Fund Program.” These funds would be used to develop price-controlled social housing units, with mechanisms for resale and rental management. The proposed alternative model offers a promising path forward, fostering collaboration among government, developers, and homebuyers to address the pressing issue of affordable housing while maintaining market equilibrium.
Abstract
Affordable housing remains a critical concern in Malaysia. This article examines the challenges of providing affordable housing within the Malaysian context from the private developers’ perspective, focusing on the prevalent private sector-led crosssubsidy model. Drawing lessons from Singapore’s Housing and Development Board (HDB) model, an alternative approach is proposed. The suggested model emphasises a government-driven, sustainable affordable housing ecosystem. It introduces a contribution in lieu system where private developers contribute a percentage of the Gross Development Value (GDV) for high-end housing projects to an “Affordable Housing Contribution Fund Program.” These funds would be used to develop price-controlled social housing units, with mechanisms for resale and rental management. The proposed alternative model offers a promising path forward, fostering collaboration among government, developers, and homebuyers to address the pressing issue of affordable housing while maintaining market equilibrium.
Chapters in this book
- Frontmatter I
- Preface V
- Contents VII
- List of Figures IX
- List of Tables XI
- Acronyms XIII
- 1 Introduction 1
- 2 Measuring Home Affordability: Challenges and Directions Forward 5
- 3 Beyond the 30% Threshold: Introducing a Subjective Indicator for Measuring Housing Affordability in Malaysia 27
- 4 Housing (Un)affordability: Reality and Challenges from the Property Developers’ Perspective 57
- 5 The State and Performance of Affordable Government Housing Initiatives in Malaysia 77
- 6 Understanding Access and Accessibility: The State of Transportation Infrastructure and Affordable Housing in Kuala Lumpur and Putrajaya 97
- 7 Housing Affordability and Productivity: The Socioeconomic Case for Inclusive Urban Housing Policies in Malaysia 123
- 8 Conclusion and the Way Forward 143
- About the Authors 151
- Index 155
Chapters in this book
- Frontmatter I
- Preface V
- Contents VII
- List of Figures IX
- List of Tables XI
- Acronyms XIII
- 1 Introduction 1
- 2 Measuring Home Affordability: Challenges and Directions Forward 5
- 3 Beyond the 30% Threshold: Introducing a Subjective Indicator for Measuring Housing Affordability in Malaysia 27
- 4 Housing (Un)affordability: Reality and Challenges from the Property Developers’ Perspective 57
- 5 The State and Performance of Affordable Government Housing Initiatives in Malaysia 77
- 6 Understanding Access and Accessibility: The State of Transportation Infrastructure and Affordable Housing in Kuala Lumpur and Putrajaya 97
- 7 Housing Affordability and Productivity: The Socioeconomic Case for Inclusive Urban Housing Policies in Malaysia 123
- 8 Conclusion and the Way Forward 143
- About the Authors 151
- Index 155
