GEORGE TOWN, Sept 18 — The Penang government is back into building homes again after a 30-year hiatus that put the prices of houses far beyond the reach of the average salary worker.
Under the previous Barisan Nasional (BN) coalition’s leadership, the state had stopped housing projects altogether in the 1980s, whether on its own or through its development arm, the Penang Development Corporation (PDC), according to PDC Properties Sdn Bhd chairman Wong Hon Wai.
“The BN state government had built about 15,000 units of residential properties in 42 projects back in the 1970s and 1980s but after that, there were no more state housing projects,” he told a press conference at PDC here.
Among the public housing projects undertaken by the state in the 1970s and 1980s were the flats in Rifle Range, Taman Free School and Kampung Melayu.
“We are now turning the trend around by kick-starting this affordable housing project that is a state government initiative introduced two years ago,” he said.
He added that according to the state treasury, the state government had not disbursed any funds for housing since 2000.
The state that is now under the leadership of the three-party Pakatan Rakyat (PR) bloc has called for open tenders for three out of the proposed eight projects under the RM500 million affordable housing scheme introduced in 2011.
The eight projects, consisting of a total 19,425 units, are located in five different districts in the state.
The tender for the project in Jalan SP Chelliah in George Town, consisting of 1,900 units on 11 acres of land, was already awarded to local construction company, Zubicon Sdn Bhd.
Earthworks on the Bandar Cassia project in Batu Kawan, to consist of 11,800 units of affordable housing, has already started although the request for proposal for the project was called in April and yet to be awarded.
Today, Wong announced a call for tender for an affordable housing project consisting of 694 units on 5.8 acres of land in Teluk Kumbar.
The project is estimated to cost more than RM100 million and the tender closes on October 16.
“The project will commence work either this December or the latest by January next year and it should be completed within a two to three year period,” he said.
As for the other five projects, Jelutong (556 units), Kampung Jawa, North Seberang Perai (707 units), Ampang Jajar, North Seberang Perai (1,200 units), Bukit Mertajam, central Seberang Perai (968 units) and Juru, South Seberang Perai (1,600 units), tender for each project will be called separately once issues such as land condition and squatters are settled.
“We will need to visit the sites to check on the land condition and to resolve squatter issues if there are any before commencing with open tender and starting work,” he said.
Rising house prices and the lack of affordable housing has been one of the main issues faced by Penangites as property prices continue to climb due to scarcity of land.
PR had pledged to build the affordable housing in its election promise during their campaigning before the polls on May 5 and now it is fulfilling its promise.
“It is time for us to execute the plans and to expedite these projects as it has been in planning since 2011,” Wong said.
PDC Properties is working with PDC and the state housing development committee to implement the projects.