There is a report on The Star today, titled “Penang May Ban Low Cost Homes”. The report was written by my friend Ian Mcintyre that quoted me on this issue. I have no complaint on the content of the report, but the title of the news report seemed to oversimplify a complex issue.

http://thestar.com.my/news/story.asp?file=/2010/7/21/nation/6694234&sec=nation

Allow me to clarify here. Low cost housing is still needed in Penang (including Penang Island), as well as other parts of the country. There are many low income families that still need it.

The idea that I want to expound here is “Affordable Home with Livable Environment”.

It is a trend nowadays that Developers are building homes way beyond the means of the general population. Young working adults find it difficult to even afford a home. The link houses in industrialized parts of Penang Island is selling at RM600,000 and above, Condos are selling at RM350,000 above. It is, without the slightest doubt, way beyond the means of around 70% of Penangites. However, these homes are still selling like hot cakes and therefore, driving the prices higher and higher.

Developers also continue to build Super-link house (3 storeys), Semi-D and Big bungalows. Prices are astronomical. The building size might be 3000 sq ft and above. I have no problem with developers building luxury homes, but generally for a single family (5 members average), we do not need such big floor space and Penang Island cannot afford to have these houses because of the scarcity of land. It is a wastage and environmentally unfriendly too. Imagine how many air-cond you need to install!

On the other end, developers are required to build cheap 600-700 sq ft low cost flats that are selling at RM 42k. It is very popular among young families, because many people can’t afford link house and this is affordable for most Penangites. When young people slowly move up their salary scale, they buy another house and they rent it out to others. Lack of maintenance and other issues quickly turn low cost flats into “unlivable” situations. That is the problem with low cost flats.

My suggestion is that we need to build something in between. We need more homes between the range of RM100,000- RM 300,000. It should be affordable and with a livable environment, having good amenities, perhaps a swimming pool, ample parking space, a garden etc. Land space is optimized and no wastage of our limited resources and environment. Low income groups can get help from Federal Government or State Gov for assistance in terms of financing it. Young people will have a choice of affordable homes with good living environment.

I do not think we can Ban low-cost homes, it is simply too far-fetched! Low cost homes should be sold strictly to families of the low-income group only.

We should make “Affordable homes” with livable environment the choice for majority of Penangites.