Property Hunter Magazine Property Hunter Magazine Issue 53 - April 2014 | Page 46

/// Hot Topic Developers in Sabah recognised for building affordable homes at SHAREDA Nite 2013, presented and witness by Minister of Local Government and Housing, Datuk Seri Hajiji Haji Noor accompanied by SHAREDA President, Mr Francis Goh and SHAREDA Vice President cum SHAREDA Nite Organising Chairperson, Dato’ John Chee commercial banks as well as Bank Islam in the country to provide loans to all first time house buyers. All this while, housing developers in Malaysia had been helping the government by complying with the quota of building low cost and medium cost houses. Shareda believed that the government’s promise of building one million affordable homes would not be fulfilled if the developers and government agencies could not market their products because the buyers failed to secure loan from the banks. At the same time, the commercial banks only collected profits from the housing developments without doing any corporate social responsibility and give incentive or facility to the needy to own homes, Goh said. SHAREDA agrees with the National Chamber of Commerce and Industry Malaysia for the setting up of a housing bank in order to ease the burden of low-income earners. Out of 50,000 low-cost houses that had been completed only 7,000 were sold. About 50% of the bank’s profits depended on housing transactions including bridging loan. With more than 3,000 branches of commercial banks in Malaysia, each bank should be given a quota of approving housing loans for 335 units each in order to achieve the government’s target of one million home purchasers. 46 www.PropertyHunter.com.my Meanwhile, Goh said SHAREDA also objected to the proposed Property Investor’s Club in Malaysia because it would hurt the market and prevent genuine property buyers from making a purchase. SHAREDAa felt that the Registrar of Societies (RoS) should not allow the club to conduct its activities of p rospect buying which as a result might see them gaining higher profit than the developers. SHAREDA to Continue Effort An umbrella company will also be set up by Sabah Housing and Real Estate Developers Association (SHAREDA) to group all its members in a coordinated and continuous effort to provide cheap, affordable houses to the poor in the state. The company, to be known as Shareda Bhd, will serve as a special purpose vehicle (SPV), whose primary objective is to facilitate members of the association to collectively construct affordable houses. The umbrella company will be funded by SHAREDA members either in cash or in land, and who would develop affordable housing projects by way of pooling resources. The SPV will help explore the opportunities for SHAREDA members to carry out affordable housing projects with less monetary aims. SHAREDA aims to raise a start-up capital of between RM18 million to RM30 million for the company which would pay back to contributing members in the form of share dividends. More than 2,000 units of affordable homes were expected to be launched this year as part of SHAREDA’s commitment to build 10,000 units of affordable homes in the state.