KUCHING: A government bid to review the cost of housing and real estate developments, as well as re-evaluate suitable locations for affordable housing projects is going down well with developers.
The Sarawak Housing and Real Estate Developers’ Association (SHEDA) said it fully supports the efforts by the Ministry of Public Health, Housing and Local Government.
Public Health, Housing and Local Government Minister Datuk Seri Dr Sim Kui Hian had earlier acknowledged a spike in the cost of building and construction materials.
In response SHEDA President Augustine C.H. Wong welcomed this timely intervention, saying developers have been struggling between escalating construction costs and capped statutory selling prices for affordable housing.
“In addition to the increase in material cost, the volume of foreign labour has not yet been restored to pre-COVID-19 pandemic levels. The shortage in an available workforce directly impacts and adversely affects a developer’s ability to build and complete development projects,” he said.
“Unfortunately, the existing imbalance in supply and demand of both building materials and workforce will undermine the affordability of housing if the current situation is left to continue unchecked with adjustments.
“Caught between various commodity and compliance costs, developers will no longer be able to sustain delivery of the volume of affordable housing required by the Sarawak government and Sarawakians,” he added.
Wong affirmed that SHEDA is ready to discuss the various costs of doing business and the implications such cost will have on home owners.
He also suggested that MPHLG and relevant authorities consider additional finance mechanisms that can complement affordable housing initiatives.
With regard to the reassessment of locality of affordable housing, Wong said the upcoming Kuching Urban Transportation System (KUTS) project by Sarawak Metro Sdn Bhd will set the foundation for new regional economies that feed back into the community.
“This positive multiplier effect will boost local activity and productivity, leading to a sustainable improvement in income levels of Sarawakians,” he said.
