What is ‘humane’ housing?

• If we are serious in ensuring houses are humanely affordable with similar facilities and amenities enjoyed by the wealthy, we need to address the root cause of why houses are so expensive, small, remotely located, and lacking in quality and amenities.

Recently, our Prime Minister Datuk Seri Anwar Ibrahim said housing projects in Malaysia, particularly affordable homes, must adhere to a humane concept. He said that these developments should prioritise the well-being and dignity of the people, ensuring they are not only affordable but also conducive to a good quality of life.

Anwar said if luxury housing includes amenities like a pool, then affordable housing should also provide a pool for the community. Similarly, if the rich have a golf course in their housing, the people should have access to a playground in theirs.

(Read: SkyWorld partners Penang state agencies for massive affordable housing project targeting M40)

In response, the National House Buyers Association (HBA) would like to expound on what “humane” housing really means.

Humane goes beyond building ‘affordable’ homes

Indeed, homes need to be safe, secure, comfortable, of quality and affordable in order to be defined as “humane”, or rather, fit for habitation by human beings. At the same time, “humane” may mean differently to people of different backgrounds, life experiences and economic situations.

To deliver humanity to the citizens of Malaysia, we believe it is not merely building homes in a certain category such as the “affordable segment or social housing”. It is about re-envisioning the housing policy in the country, which goes beyond taking care only of the GDP (gross domestic product) or the profit margin of housing developers, their shadow investors/actual owners and the industry stakeholders.

A house is not an investment product to the majority of Malaysians. It is security, a home, where families are nurtured and a haven after a long day’s work. These apply to most Malaysians irrespective of which economic category the Government puts us under — B40, M40, T20, T15, T1 — and it cuts across race as well.

The housing policy needs to be revamped. We need to focus on addressing the massive and long-standing problems surrounding the abandonment of projects, delays in completion of housing projects, defects, non-issuance of strata titles and unaffordability to average Malaysians, especially those who do not qualify for social housing and “affordable housing” but not rich enough to afford the gated community, private club house or private swimming pool — what some define as humane housing — to name a few. 

One way to address this is changing the sell-then-build system to build-then-sell (BTS). In response to housing developers' unsubstantiated resistance to implementing the BTS concept for the entire housing industry, HBA has counter-proposed the BTS 10:90 for the affordable segment.

We believe that moving the financial and construction risks to the housing developer is the more humane way to mitigate the problems which house buyers face. The BTS concept, which is already incorporated into the Housing Development Act (Act 118), is the humane way to ensure house buyers' rights are protected. 

Definition of ‘affordable housing’

What is “affordable”? If we were to ask the developers, they define it as houses priced between RM500,000 and RM900,000, but if we were to examine the type of houses built within this price range, they are usually intermediate terrace houses and condominiums. In the city centre like Kuala Lumpur, rarely do we find terrace houses being built anymore as developers aim to monetise whatever plot of land they are able to acquire and the best way to obtain the most profit is to build expensive but small-sized condominiums. As for terrace houses, they are in the suburbs and some even farther away from the city centre, which makes us wonder why they are priced so high.

At the same time, the Government and policy makers need to define what “affordable” is and not merely create a catchphrase for houses which are priced within RM150,000 to RM300,000. These houses face the most problems, with issues of abandonment, major defects and low quality materials and workmanship, and they are mostly high-rise strata or landed houses built in out-of-the-way areas. 

If we are serious in ensuring houses are humanely affordable with similar facilities and amenities enjoyed by the wealthy, we need to address the root cause of why houses are so expensive, small, remotely located, and lacking in quality and amenities.

We must address issues such as compliance costs, premiums for land conversions, capital contribution for construction of utility infrastructure, cross subsidies, and giving up land for public facilities and bumiputera lots. In addition, the profit margin of the industry players are non-transparent — we don't really have full data as to how much housing developers hike up the final house price from the actual cost of constructing one housing unit — the industry players claim it is a mere 11% percent of their gross development value, but this is not accurate as houses are getting more expensive every year while the sizes and quality are shrinking.

‘Humane’ is respecting owners’ rights

The term “human-concept” or “human-centric” refers to “approaches, designs, or perspectives that prioritise human needs, experiences and well-being. In various contexts, it focuses on putting people at the centre of decision-making, processes or systems, ensuring that solutions are designed with empathy, usability, and effectiveness for human users” says Wikipedia.

It is about respecting the average citizen as human beings, not as mere end-consumers of over-priced products. It means respecting the rights of house owners even if the owner and the house are old and not aesthetically appealing anymore.

Unfortunately, the current government administration’s Urban Redevelopment Act (URA) proposal is one step which is utterly inhumane apart from being unconstitutional. This is against what being humane is. With the Government’s proposal of a “consent threshold of 80% for properties 30 years old and below, and 75% for those more than 30 years old, the owners are divided into two camps: the “sell” vs the “stay”. The dissenting groups are obviously unhappy with the inhumane treatment.

Features that should be in affordable housing to enhance life quality

The basic amenities should include sanitary services, security, parking facilities, playgrounds, shoplots for banks, clinics, eateries, sundry shops, market, police station, fire station, schools, kindergartens, mosque or surau, other religious houses of worship, green spaces/parks and easy access to public transport (so, building affordable apartments in a remote area is not humane but merely paying lip service to “affordability”). These are in fact a no-brainer as housing areas since the 1970s have all these incorporated, so why should it be any different in the 21st century?

There should not be any segregation between the affordable housing category and the medium and high-end unit residents within a development. We have received complaints from Rumawip (Residensi Wilayah) owners that they are barred by the owners of the medium-high units from using certain common facilities though they share the same main entrance and compound within the stratified development, as well as pay the same rates of maintenance charges and sinking fund. This matter has been referred to the Commissioner of Buildings for investigation and due intervention.

Quota for affordable homes should be need-based, not race-based

In our opinion, there should not be any bumiputera quota (whether in the form of discounts and/or reserve units) for the affordable homes category based on the following rationale:

1 Affordable homes should be opened to every rakyat of this country

It should not be allocated to a chosen group based on a particular race, religion or creed. The overriding principle of equality and fair distribution should prevail above race. Poverty has no preference and afflicts one and all.

2 Affordable homes should be allocated based on income level

Affordable homes must be allocated in an objective and transparent manner and based on income level. HBA recommends that the maximum combined household income to be eligible for affordable homes should be set at RM5,000 per month at the time of the property purchase.

This will ensure that such homes only reach the intended targeted segment in the most objective and transparent manner.

3 Affordable homes should be reserved for first-time house buyers

Affordable homes should be allocated for “first-time house buyers” only. HBA has previously voiced our disagreement that PR1MA units were also opened up for second-time house buyers even when there were already not enough units to cater for first-time buyers. 

In addition, such affordable homes must only be for own-stay and the Government should conduct periodic checks to ensure compliance. Any owner found renting out their affordable homes should have his home confiscated and resold to other more deserving applicants.

There must be restrictions against reselling such affordable homes for a moratorium period of 10 years after taking vacant possession. Any owner wanting to resell his unit within this period can only do so to a special-purpose vehicle/agency (to be set up by the Government to manage affordable homes) at the original purchase price and adjusted at the official inflation rate.

4 Demand is determined primarily by location

Buyers’ preference for properties are primarily based on location. As such, there will be areas that see stronger demand from bumiputera buyers and otherwise.

Hence, it is not feasible to impose bumiputera quotas for let’s say, Chinese-dominated areas and likewise, there is no necessity to impose bumiputera quotas on Malay-majority areas.

Pool maintenance not feasible in affordable housing

One of the pre-requisites of common-facility plans to the local council is the inclusion of a playground and other standard amenities. However, when it comes to a swimming pool, the expenses of maintaining it includes its accessories, generators and safety, which are pretty expensive and are an on-going concern. A pool facility will increase maintenance charges and sinking funds.

Meaningful change for sustainable living in affordable housing

What would be more practical and relevant for affordable housing are these:

1 Sustainable designs, not superficial upgrades: New developments must prioritise energy efficiency, durable infrastructure, and cost-effective maintenance systems. Green washing modern amenities without addressing long-term sustainability is reckless.

2 Integrated urban planning: Green spaces, public transit and amenities for an ageing population must be integral to redevelopment — not afterthoughts to justify exorbitant costs.

Delays in any form is not justified

The Prime Minister also stressed the urgency of affordable housing development projects, saying: “There is no justification for delaying affordable housing projects once the necessary documentation and approvals are in place".

This message is especially pertinent to the local councils, land offices and relevant ministries as fees, charges, premiums and other payments — official or non-official — which the housing developers are obligated to pay to these authorities, are all taken into consideration into the final house price which will impact the quality, size and types of amenities the housing developer is willing to construct. Whatever costs will always be factored into the sale price because property developers are commercial entities.

Yes, we agree that there is no justification for delays in building affordable housing and they have to be facilitated to maintain the costs and developers’ cash-flow. However, our greater concern in delays are those late, sick and abandoned housing projects that have plagued our skyline, where even affordable housing have fallen victims to.

Datuk Chang Kim Loong is the Hon Secretary-general of the National House Buyers Association (HBA).

HBA can be contacted at: 
Email: [email protected]
Website: www.hba.org.my
Tel: +6012 334 5676

Looking to buy a home? Sign up for EdgeProp START and get exclusive rewards and vouchers for ANY home purchase in Malaysia (primary or subsale)!