Deja vu… Back in 2012, when the maximum density was increased from 30 homes per acre to 87 per acre, we were told that this would encourage developer to build more affordable homes. Did that happen? You tell me.
What we got instead was more and more expensive homes.
Now the density is being hiked to more than four times the pre-2012 level to 128 homes per acre, again to encourage more affordable – an tinier – homes. This at a time when the population of Penang is rising every so slightly.
Excerpt from a Star report:
Toh said at a Rehda Chinese New Year dinner that Kuala Lumpur-based and Penang-based developers were now exploring how to best implement projects under the new density guideline, which had increased the density per per acre to 128 units from 87 units.
“The additional 41 units per acre allows the developer to build more 600 sq ft to 700 sq ft units.
“The pricing for these properties is over RM400,000.
“Under the old guideline, developers, due to the lower density of 87 units per acre, have to focus on building larger units of 1,000 to 1,400 sq ft to sell at a higher price to generate a reasonable margin.
“If they build more smaller size units with a lower selling price under the old guideline, they would not be able to generate a decent margin,” Toh said.
And they are allowing corporate guarantees instead of bank guarantees for the development charges.
We are not holding our breath to see if this will translate to more affordable – and tinier homes being built.
In the meantime, enjoy the congestion!