OUR VISION: (From second right) Zaidi, Abang Johari, Talib and Yaw being briefed by a housing developer.
Housing minister warns of social problems if property prices spiral beyond means of local wage earners
BINTULU: At the rate property price in the country is rising, local average wage earners will not be able to afford to buy houses in the future.
Housing Minister Datuk Amar Abang Johari Tun Openg sounded this warning at the Sarawak Housing Real Estate Developers Association(Sheda) Home and Property Roadshow 2013 at ParkCity Everly Hotel here yesterday.
He added that there was an urgent need to manage the prices of houses otherwise many locals would not be able to afford them and this would give rise to various social problems.
Citing the situation in a neighbouring country as example he said, “Because of the high price of properties and houses, most of the owners are foreigners. The locals couldn’t afford to own a house in their own country.”
Abang Johari pointed out that the three main factors that caused the price of properties to increase are land price, manpower and building materials.
He said his ministry was looking at various ways to control the price of houses and one of them was to set up land banks to stabilise the cost of land.
“We will try to create the land bank, and its impact will be seen in five to 10 years time.
“Looking at the current scenario, the existing price exceeds the estimated price that buyers are hoping for, thus we plan to create a land bank for the next 10 years.”
Another means to bring the prices of houses down was to use the Industrialised Building System (IBS) to build houses as prefabricated panels used in the system would be cheaper than conventional materials.
Urging developers to use the system, Abang Johari added that IBS would also cut down the cost of labour as it needed fewer workers and less time to build a house.
He noted that developers who used IBS for their housing estates here had proven the system was a more efficient and cost effective way to build houses.
The minister urged developers in other divisions to emulate these developers by switching to IBS for their projects.
Also present were Assistant Minister of Tourism Datuk Talib Zulpilip, Sheda president Zaidi Ahmad, Deputy Resident (Social) Richard Michael Abunawas, BDA general manager Datu Mohidin Ishak, Sheda vice president Troy Yaw Chee Weng, Sheda deputy president Joseph Wong Kee Liong, Sheda secretary Sim Kiang Chiok and Sheda general manager Tang Teck Kian.