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Budget 2015: More Funds For Building Affordable Houses

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KUALA LUMPUR, Oct 10 (Bernama) — The government will continue to allocate funds to build affordable houses in an effort to provide adequate housing for the low-income group.

The Economic Report 2014/2015 said the houses were being built under various government programmes such as Rumah Mesra Rakyat (RMR), Rumah Mampu Milik (RMM), Rumah Idaman Rakyat (RIR), Rumah Mesra Rakyat 1Malaysia and the 1Malaysia Housing Programme (PR1MA).

The new category, Rumah Mesra Rakyat, was introduced in Budget 2013 with the sale prices ranging from RM45,000 to RM65,000 per unit.

The new category comes with a government subsidy of RM15,000 and RM20,000 per unit. The government has also allocated RM1 billion under PR1MA to build
80,000 units.

The report said more houses were built in the first half of this year to meet the rising demand from would-be buyers.

The residental sub-sector expanded strongly by 22.1 per cent during the first half of this year compared to 15.7 per cent over the same period last year, supported by higher growth in suppy at 9.5 per cent.

According to the report, new housing approvals increased significantly by 32.6 per cent to 96,115 units compared to 6.8 per cent or 72,461 units between
January and June last year.

The highest take-up rate was recorded for houses priced between RM200,001 and RM250,000 at 49.3 per cent, while the take-up rate for houses priced between
RM500,001 and RM 1,000,000 within six months after the launch was lower at 11.6 per cent (Jan-June 2013 – 34.2 per cent), following several measures to cool the
housing sector.

The value of total property transactions, it said, increased to RM82 billion (Jan-June 2013 – RM 68.8 billion) with the volume expanding by 3.3 per cent to
193,405 transactions during the first six months of 2014.

The house prices in Malaysia continue to rise at a lower pace due to several measures taken to curb rising price since 2010. The price increase was driven by
strong demand following favourable labour market conditions and growing household income.

Meanwhile, the construction sector also continued to register a double-digit growth of 14.3 per cent during the first half of this year (Jan-June 2013 – 12 per cent) involving 19,649 construction projects, with contract value of RM50.1 billion.-Bernama

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