KUCHING, April 25: Developers will no longer be able to sustain delivery of affordable housing required by the Sarawak government and Sarawakians due to various commodity and compliance costs, says Sarawak Housing and Real Estate Developers’ Association (Sheda) president Augustine Wong.
Wong said in addition to the increase in material cost, the volume of foreign labour has not yet been restored to pre-Covid-19 pandemic levels.
“The shortage in an available workforce directly impacts and adversely affects a developer’s ability to build and complete development projects.
“Unfortunately, the existing imbalance in supply and demand of both building materials and workforce will undermine the affordability of housing if the current situation is left to continue unchecked with adjustments,” he said in a statement today.
Wong also said Sheda fully supports the Ministry of Public Health, Housing and Local Government’s (MPHLG) efforts to review the cost of housing and real estate developments, as well as re-evaluate suitable locations for affordable housing projects.
According to him, it is a timely intervention as developers have been struggling between escalating construction costs and capped statutory selling prices for affordable housing.
“Sheda is willing and ready to discuss the various costs of doing business and the implications such cost will have on home owners,” he added
He also suggested that MPHLG and relevant authorities consider additional finance mechanisms to complement affordable housing initiatives.
Meanwhile, with regards to the reassessment of locality of affordable housing, Wong opined that the upcoming Kuching Urban Transportation System (KUTS) project by Sarawak Metro Sdn Bhd will set foundations for new regional economies that feed back into the community.
He said this positive multiplier effect will boost local activity and productivity, leading to a sustainable improvement in income levels of Sarawakians. — DayakDaily
