Sabah govt wants developers to provide more affordable housing

Deputy Chief Minister II Datuk Dr Joachim Gunsalam has called on housing developers in Sabah to assist the state government in providing affordable housing for the people. He expressed the government’s willingness to discuss a mechanism that would allow developers to build high-end, luxury houses as well as affordable houses, in order to address concerns about the potential loss of interest in luxury homes due to the proximity of affordable housing.

During the Shareda Propex 2023 property expo in Kota Kinabalu, Dr Gunsalam urged members of the Sabah Housing and Real Estate Developers Association (Shareda) to collaborate in constructing more affordable properties. He acknowledged their concerns about the mismatch between luxury and affordable housing and proposed a workable mechanism to ensure developers fulfill their responsibility in helping the government build affordable houses in different locations. One possible approach would be for developers to contribute funds toward affordable homes as a condition for obtaining developer licenses.

Dr Gunsalam also recognized Shareda’s efforts in providing affordable housing but stressed the need for further action to meet the needs of the B40 and M40 segments in addition to the T20 segment. He highlighted various government initiatives, such as the Home Ownership Campaign (HOC), which supports first-time homebuyers of properties worth up to RM500,000 until the end of 2024. The Keluarga Malaysia Home Ownership Initiative or i-Miliki exempts first-time buyers from stamp duty for properties under RM500,000, with 75% exemption for properties priced between RM500,001 and RM1,000,000. Additionally, the Skim Jaminan Kredit Perumahan (SJKP) provides coverage for applicants without a regular source of income since April this year.