PR1MA gets down to work

Artist's impression of PR1MA@Alam Damai, Cheras. Registration for specific PR1MA developments nationwide will soon be opened through newspapers and PR1MA's website.

PERBADANAN PR1MA Malaysia, tasked with undertaking the 1Malaysia Housing Programme to build affordable housing schemes for middle-income Malaysians, is getting on with its responsibility with 90,461 housing units approved for development across the country.

Established under the Perumahan Rakyat 1Malaysia Act 2012, it has a panel of Members of Corporation (MOC) to oversee the operations of PR1MA in the performance of its functions and powers. They comprise of Tan Sri Jamaludin Jarjis, Datuk Abdul Mutalib Alias, Tan Sri Dr Ali Hamsa, Tan Sri Dr Mohd Irwan Serigar Abdullah, Datuk Azlin Alias, Datuk Sri Mohammed Shazalli Ramly, Tengku Datuk Zafrul Tengku Abdul Aziz and Datuk Seri Abdul Wahab Maskan.

According to PR1MA chief executive officer Datuk Abdul Mutalib, PR1MA is the sole authority empowered to plan, develop, construct and maintain affordable housing and townships under the 1Malaysia Housing Programme.

“Our mandate is to build 500,000 units of PR1MA homes. Close to 40,000 units would have started construction or will start construction by end-2014. A cumulative total of 160,000 units will be approved by PR1MA’s MOC for 2013 and 2014,” he tells StarBizWeek.

Under Budget 2015, RM1.3bil has been allocated for PR1MA to build 80,000 homes, with the qualifying monthly household income ceiling raised to RM10,000 from RM8,000 previously.

The PR1MA projects will be built in all the states nationwide, and for the Klang Valley, the approved projects are located in Cheras, Brickfields, Bukit Jalil, Bukit Bintang, Setapak, Sepang, Kajang and Ampang Jaya.

Abdul Mutalib says the PR1MA projects that have commenced construction are in Kuala Lumpur, Johor, Melaka, Negeri Sembilan, Kedah and Perak. The developments comprise landed properties, high-rise apartments and mixed developments. 

“The development offerings will vary; from studio units to 3-bedroom units to suit the needs of our customer profile. 

“We also hope to offer “Grow Homes” or “Rumah Ibu”, a type of home that is meant for the various groups of middle-income earners including singles, young couples and single parents, who will appreciate the flexibility of having the infrastructure to grow their house bigger. This type of homes however, are restricted to areas where land is cheap,” Abdul Mutalib explains.

Explaining the PR1MA development concept, he says the housing projects will be aesthetically pleasing, in a community where the amenities and facilities are thoughtfully planned. 

The projects will be secure to ensure the safety of all PR1MA residents, and areas where they can come together socially through recreational spaces, amenities and facilities will be provided. 

PR1MA townships will include verdant gardens, play grounds, surau and day-care centres as standard features. 

To meet PR1MA’s objective of playing the catalytic role of providing affordable housing for the middle-income group, he says the key focus will be to undertake demand analysis to identify the need for the PR1MA homes in order to monitor and manage the quality, supply and demand situation; supervise, plan and execute the design, construction, maintenance and operations of the PR1MA homes and communities; building the brand of PR1MA homes by setting and enforcing the standards for the developments; set the selling prices and allocate PR1MA homes to eligible buyers as well as offer buyer financing assistance programmes; and drive the public-private partnerships to accelerate the delivery of the mandate.

PR1MA is working closely with private developers, local authorities and partners, to expedite the standard operating procedures and processes in the least time possible. 

It is also exploring collaboration possibilities on Industrialised Housing Technology with other building technology providers from Japan, Australia, UK, US and China to expedite the building process. 

Public-private collaboration

Abdul Mutalib says given the scale of development that PR1MA has to undertake and deliver, it needs ample land to build the houses but so far, the lands that have been received from the Federal Government are rather minimal.

“As such we also need to look to the state governments to source for the required land as they can be obtained at a lower cost. 

“We also work with government linked companies, private developers and cooperatives in identifying land which are suitable for PR1MA developments. We encourage the relevant parties to collaborate with PR1MA to build the houses,” Abdul Mutalib says.

PR1MA also works with other developers to build developments that are designed to meet social, environmental and economic sustainability objectives, where people want to live, work and play, in thriving and safe communities which are actively engaged.

He says registration for the specific PR1MA developments nationwide will soon be opened through the newspapers and PR1MA’s website. 

“We will continue to open for registration more PR1MA developments as and when they are ready, and subsequently do ballotings for these developments. Todate, PR1MA@Seremban Sentral has been opened for application. The balloting for this development will be organised soon,” he says.

Explaining the building process, he says before the house can be delivered to the buyer, there are many processes that must be followed such as proper research, planning, approval of the board, approval of the land development application, the local authority and other approvals that are needed to be obtained before construction begins. 

Construction will take approximately 24 months for landed property and 36 months for high-rise developments. 

To be eligible for a PR1MA Home, applicants must meet several key criteria. Applicants need to be a Malaysian citizen aged 21 years and above, with preference given to residents in the area where the PR1MA development would be built. Applicants should not own more than one property in Malaysia.

They should also have an individual or combined gross household income of between RM2,500 and RM10,000 a month to qualify. 

The income band has just been expanded from a ceiling of RM7,500 previously, to RM10,000. 

This is in line with the National Household Income (HHI) survey data which has shown that the average HHI has been rising the past few years with a significant increase in urban areas such as Kuala Lumpur, Putrajaya and Selangor.

Rising in tandem is the average value of properties in these areas which have been on an upward trend. 

Statistics show that the average property value in Kuala Lumpur and Selangor have risen by 37.6% and 19.9% respectively, between 2012 and 2013 (according to Property Market Report 2013 Valuation and Property Services Department). 

This rapid increase in market house prices have surpassed the means of the middle income group, especially those living in urban areas.

By expanding the middle-income household bandwidth, Abdul Mutalib says PR1MA would be able to offer home ownership opportunities for a wider segment of the population. 

“Besides the public at large, civil servants, including teachers too, will stand to benefit from this expanded bandwidth. 

“The salary structure of a government officer (Grade 44) has a gross monthly salary of RM3,600. If combined with their spouse’s income, and factoring in annual increments, it would definitely exceed the RM 7,500 threshold. 

“Through this increase, not only would it provide an opportunity for this group to own a home, but it would also open avenues for those individuals up to Grade 48 and even Grade 52,” he says. 

Under the PR1MA end-financing packages with its panel of banks comprising Maybank, MBSB and CIMB Bank, end-financing packages of up to 110% margin of finance from the sale and purchase agreement price will be provided. These financing packages include funding for MRTA/MRTT, legal fees, stamp duties and other loan-related expenses. No deposit is required and all loan-related expenses will be covered. The loan tenure is for up to 35 years or up to age 70, whichever is earlier. 

Buyers may choose to either service the interest during construction and commence instalment only upon completion of the property, or another option is to capitalise the progressive interest into the loan amount whilst waiting for completion of the property. 

No processing fees will be imposed for the loan. The moratorium is 10 years for outright purchases.

And to help those who are not able to get bank financing even through PR1MA’s panel banks, purchasers can opt for a deferred home ownership scheme called Rent-to-Own (RTO). 

RTO is a 10-year rental scheme developed to help buyers to eventually own their home. 

Participants will initially rent a PR1MA home and eventually purchase the PR1MA home at a pre-determined option price through conventional end-financing when their credit position has improved. 

For outright purchasers, they cannot sell the house for ten years, while for those on the RTO scheme, the moratorium is 15 years. - The Star

PR1MA to build 1,000 affordable Langkawi homes with partner

LANGKAWI: The 1Malaysia People’s Housing Scheme (PR1MA) has entered into partnership with the Langkawi Development Authority (Lada) to build 1,000 affordable homes.

The houses will be built about 2km from Kuah town on a 58.27ha site.

Prime Minister Datuk Seri Najib Tun Razak, who witnessed the signing of the memorandum of understanding (MoU) for the project between PR1MA and Lada yesterday, said the prices for the homes would be 20% cheaper than market rate.

PR1MA chief executive officer Datuk Abdul Mutalib Alias and Lada chief executive officer Tan Sri Khalid Ramli signed the MoU.

The 1,000 homes to be built on 22.25ha of the site will consist of single and double-storey terrace houses as well as mid-rise apartments. The project is expected to start by the end of 2015.

A statement released by PR1MA said the housing project would have public facilities while the remaining 36ha would be kept for future development under Phase 2.

As of last month, PR1MA had approved 70 projects in various states.

At another event, Najib said the country’s broadband penetration rate was currently at 67.1%, just 7.9% behind the Government’s target of 75% by 2015.

He noted that the Government’s effort to broaden its coverage over the years had produced positive results.

“The rate was only 31.7% in 2009. Development and telecommunications are related, just like an engine and its machinery,” he said at the launch of the Langkawi Communications Empowerment Initiative and the 1Malaysia Broadband Carnival 2014.

He added that by next year, residents and tourists in Langkawi would enjoy better broadband coverage when 90% of the island was connected to the 3G network. - The Star

Bina Darulaman sells 323 units in Taman Insaniah to PR1MA

KUALA LUMPUR: Bina Darulaman Bhd (BDB), Kedah’s only public-listed government-linked company, is selling one-third or 323 units of its Taman Insaniah affordable housing development in Bandar Kuala Ketil, Kedah to PR1MA Malaysia Corp (PR1MA) for RM72 million.

“The total gross development value of the [Taman Insaniah] project is RM220 million, and the portion we are selling to PR1MA is worth about RM72 million,” said BDB managing director Datuk Izham Yusoff at the signing of the master en bloc purchase agreement between BDB subsidiary, Darulaman Realty Sdn Bhd, and PRIMA yesterday.

Taman Insaniah is a 949-unit development within the 1,100-acre (404.7ha) township of Darulaman Utama, which is located about 750m from the Kuala Ketil town in Baling. Work on the project is 60% complete and will be fully completed in the fourth quarter of 2015.

Izham said out of the 949 units, about 100 units remain unsold.

“The [presence] of  Kolej Universiti Insaniah (KUIN) about 1km away from Taman Insaniah, is expected to be the catalyst for the development of the surrounding area,” he said.

The project, work on which commenced on Nov 10, 2011, had started off as a 435-unit development, and was initially meant to be sold to KUIN to serve as students’ accommodation.

However, a proposal was made in February this year to sell the 435 units to PR1MA, but the number was later reduced to 323 units to comply with PR1MA’s requirement for its “gated and guarded” concept.

“In line with our vision to be a leading housing and property development player in Kedah, we are confident that this project will be the beginning of a strategic collaboration between BDB and PR1MA to provide Kedahans with the opportunity to buy affordable housing,” said Izham.

He said BDB had recently acquired five parcels of land totalling 485ha from Perbadanan Kemajuan Negeri Kedah, which are located in Kg Kisap in Langkawi, Pokok Sena, Sungai Lalang in Kuala Muda, Sungai Ular in Kulim and Hosba in Kubang Pasu.

“This brings our total land bank to over 1,200ha, which offers us the opportunity for future collaborations with stakeholders who share a common interest and commitment to provide affordable housing developments for the benefit of the people,” said Izham.

PR1MA chairman Tan Sri Dr Jamaludin Jarjis said PR1MA will be rolling out its PR1MA “Rumah Ibu” concept in Kedah and Perak next year.

“PR1MA Rumah Ibu allows single-child families, or those who are newly married, to purchase landed properties in selected PR1MA developments,” he said, adding that the project will start with a one-room unit first, with an option to expand the number of rooms later once people can afford to do so.

This article first appeared in The Edge Financial Daily, on September 12, 2014.

30-year rent-to-own plan for those who cannot get bank loans

Warm greeting: Najib sharing a light moment with Umno committee members at the Negri Sembilan Umno building. Looking on is Mohamad Hasan (second from left). - Bernama

SEREMBAN: Those who cannot secure bank loans for the 1Malaysia People’s Housing Scheme (PR1MA) can own the units they are staying in by paying rental for up to 30 years, under a government plan.

Prime Minister Datuk Seri Najib Tun Razak said the Rent-to-Own (RTO) scheme was designed to allow potential buyers, who could not afford these units or had been turned away by the banks due to various factors, to own PR1MA units.

“Under the RTO scheme, the ­buyers will have to pay rent for, say, 20 or 30 years and will eventually own these units. On our part, we will work something out with the banks and get them to help out in its implementation,” he said during the groundbreaking ceremony for the Seremban Sentral PR1MA project here yesterday.

Both the Government and PR1MA, said Najib, had to intervene as there were cases of ­genuine buyers who could not come up with proper documents to support their applications.

“We have to intervene because we know owning a house is a priority for most Malaysians,” he added.

As of last year, PR1MA, which has over 700,000 interested buyers on its national registration system, has already approved the construction of 80,494 affordable units.

Najib, who was supposed to only launch the construction of 3,196 high-rise apartments for the project, also approved an additional 2,000 units following a suggestion from Negri Sembilan Mentri Besar Datuk Seri Mohamad Hasan.

“I support the Mentri Besar’s idea for an additional 2,000 units as there is extra space. This is for the benefit of the rakyat,” he said to applause from the crowd.

Although the price range for these units had yet to be determined, Najib said these would be at least 20% cheaper than the prevailing market rate.

The first phase of the project, comprising the construction of 1,504 apartments, will be com­pleted in two years while another 1,692 are scheduled to be finished within 30 months.

The 30ha project is being jointly carried out under a public-private partnership among PR1MA, the Public-Private Partnership Unit in the Prime Minister’s Department, Railway Assets Corporation, Keretapi Tanah Melayu Bhd, the state government and developer Brunsfield International Group.

The site is located behind the existing Seremban KTM station in the heart of town. - The Star

Good news for housebuyers

THE Federal Government has bought 80.94ha of land in Teluk Bahang for the 1Malaysia People’s Housing Scheme (PR1MA), said Datuk Shah Headan Ayoob Hussain Shah (BN -Teluk Bahang).

He said he had checked with PR1MA Corporation Malaysia which confirmed that the land had been bought for the Federal Government’s initiative for affordable housing.

He said this is response to a question raised by Jagdeep Singh Deo (DAP - Dato Keramat) during the latter’s winding-up speech at the state assembly yesterday.

Jagdeep had asked how many of the 133,000 PR1MA units to be built nationwide would be built in Penang.

In response to Shah Headan’s reply, Jagdeep said he was happy to receive the news that a piece of land had been bought for the housing scheme.

“Hopefully by next month, I can get a positive reply that PR1MA will be carried out in Penang, where the project will be carried out and the timeline for the project.

“We will try to assist to expedite the project because this type of housing is important,” said Jagdeep who is the state Housing, Town and Planning Committee chairman.

In his winding-up speech earlier, Jagdeep had also said that applicants of low-cost, low medium-cost and affordable houses were facing difficulty in obtaining bank loans.

He said the rejection rate was 50%, adding those who were successful in obtaining the loans were slapped with high interest rates.

Jagdeep also said applicants for public housing units in Penang must be at least 21 years old and a voter in the state.

He said this was a new condition set by the Selection Process Enhancement Committee.- The Star