Authorities urged to lower land prices for RW projects

By NUR HAZIQAH A MALEK / Pic By MUHD AMIN NAHARUL

The relevant authorities should consider reducing land prices for the development of more homes under the Residensi Wilayah (RW) scheme, formerly known as Rumah Mampu Milik Wilayah Persekutuan.

SkyWorld Development Group founder and group MD Datuk Ng Thien Phing said projects under the RW programme could also benefit from cross-subsidy, elimination of development order charges, real estate exchange premium and lease extension.

He said other fees that could be reviewed to keep RW house prices affordable include those involving Tenaga Nasional Bhd, Syarikat Bekalan Air Selangor Sdn Bhd, Indah Water Konsortium Sdn Bhd and other related agencies.

“Our company also hopes that the government can help home developers in the effort to decrease business costs.

“Banks should also look into giving more flexibility in terms of loans and lower interest rates to first-time homebuyers,” he said, adding that SkyWold will continue to support the government’s goal to build a million affordable homes in the next 10 years.

Speaking at the topping-off ceremony for SkyAwani 2 in Kuala Lumpur yesterday, Ng said lower development costs will benefit homebuyers under the scheme.

SkyWorld is currently developing the SkyAwani 2 and SkyAwani 4 under the RW scheme.

He said SkyAwani 2 is now 70% complete and it is projected to be ready earlier than its initial completion date.

Each unit in SkyAwani 2 that spans over an area of 1.15ha, is 800 sq ft, comprising three bedrooms and two bathrooms priced at RM300,000.

Ng said all 708 units at SkyAwani 2 have been sold out since its launch in December 2016.

It was reported that SkyAwani 2 has an estimated total gross development value of over RM250 million.

Federal Territories Minister Khalid Abdul Samad, who was present at the ceremony, said future projects under the RW scheme should also undergo the QLASSIC assessment by the Construction Industry Development Board.

“The SkyAwani 2 will undergo the assessment in June 2019, and I believe that this project will increase in market value and become what buyers say ‘value for money’,” he said.

Meanwhile, SkyWorld’s previous RW project SkyAwani 1 achieved 76% standard score under the QLASSIC assessment, and its second inception is projected to reach at least 70% and above.

Khalid said the government will ensure that the accommodations under the campaign would fulfil the consumers demand for affordable housing.

“Therefore, I also urge developers to build a project for RW that offers 900-sq-ft units but maintains a price that is not over RM300,000. A more comfortable and spacious accommodation will also increase the quality of life,” he said.

To date, Ng said SkyWorld has launched 3,839 units under the RW scheme, comprising SkyAwani 1 (1,226 units), SkyAwani 2 (708 units) and SkyAwani 3 (1,905 units).

“Within this year, our company is expected to launch SkyAwani 4 in Setapak, which will add 1,782 units to our RW portfolio,” he said.