“NATIONAL HOUSING POLICIES:

CHALLENGES AND WAY FORWARD”

DR. HJ. ALAUDDIN SIDAL NATIONAL HOUSING DEPARTMENT

MALAYSIA

1st Oktober 2019 | PROPERTY TALK 2019 | I-KPKT

1

HOUSING AFFORDABILITY

Buildings or structures that

individuals and their family may

live in or the providing of places

for people to live

Source: http://www.businessdictionary.com/definition/housing.html

Housing, or

more

generally living spaces

refers to

the construction

and assigned

usage of houses or buildings collectively

the planning or

provision

delivered by an authority

a home in which to live,

whether this is a house,

or some other kind

of dwelling, lodging, or shelter

for the purpose

of sheltering people

Source: https://en.wikipedia.org/wiki/Housing

WHAT IS HOUSING?

3

Inexpensive: Reasonably priced and

adequate in quality and location

Able to be bought or rented

by people who do not earn a lot of money

Source: https://en.oxforddictionaries.com/definition/affordable

https://dictionary.cambridge.org/dictionary/english/affordable

WHAT IS AFFORDABLE?

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OVERVIEW

United Nations Human Settlement Program (2011) –

Affordable housing is defined as:

• housing with decent quality and suitably located, and its

purchase does not prevent its occupants from satisfying their

other basic living needs; and

• the construct of an affordable house includes not only the

price of the house, but also its quality and location.

The Australian 1991/1992 National Housing Strategy,

recommended that:

• households in the bottom 40% of the income distribution, their

maximum housing cost burden is capped at 30% of their

household income.

Three commonly used approaches to determining house purchase

capabilities:

• Median Multiple (MM)

• Housing Cost Burden (HCB)

• Residual Income (RI).

Malaysia’s home ownership agenda has always focused on

• access to quality ; and

• affordable housing for the people

Affordability of Housing In Malaysia

The median multiple methodology is used to access Malaysian

property market;

• house is considered unaffordable to a household if its median

multiple exceeds 3.0 (Bank Negara Malaysia, 2016).

• The national median multiple was recorded between 4.0 and 5.0

from year 2002 to 2016, which is above the median multiple 3.0

affordability threshold.

Figure 1: Malaysia

Housing Price

Index, 1997 – 2016

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Method

Definition

Affordable Housing refers to residential property which is deemed affordable

to those households with income at, or below the median income as

determined by the national government using a recognised housing

affordability index.

GAPS & ISSUES

7 HOUSING

ISSUES

(i) Housing unaffordability based on selling / market price

(ii) Low quality of housing

(iii) Mismatch between supply and demand for housing

(iv) Weakness in housing facility management and maintenance

(v) Absence of coordination and Integrated Housing Data System

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(vi) Rising housing component costs

(vii) Access to financing

SESSION 1: EXPERIENCE SHARING – REGIONAL AFFORDABLE HOUSING PRACTICES: AFFORDABLE HOUSING IN MALAYSIA

3 Key Factors Resulting in Housing Unaffordability: i. House prices > household income ii. Housing supply skewed towards unaffordable range iii. Mismatch between supply and demand for housing

HOUSING UNAFFORDABILITY

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Mismatch Between Demand and

Supply for Housing

• A Housing Need and Demand Assessment (HNDA) is used to estimate the number of additional housing units necessary to meet existing and projected future housing requirements.

Housing Need

Effective Demand

Housing Demand

Existing stock

Incoming stock

Housing Supply

Differences in housing demand and housing supply creates a housing gap

8

An integrated housing database system

ACCESS TO FINANCING

SESSION 1: EXPERIENCE SHARING – REGIONAL AFFORDABLE HOUSING PRACTICES: AFFORDABLE HOUSING IN MALAYSIA

Labour-intensive traditional construction methods

RISING CONSTRUCTION AND LAND COST

Land costs in urban and semi-urban are very high

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HOUSING POLICIES

National Housing Policy

Affordable Housing Policy

Private Property Development

Policy

ii. Strata Title Act 1985 (Act 318)

iii. Strata Management Act (Act 757)

iv. Residential Tenancy Act (will be enacted)

i. Public Housing Management Act

(is being enacted)

iv. Housing Development Act 1966 (Act 118) - amendment v. Commercial Development

Act (will be enacted) vi. Waqaf Land Development

Act (will be enacted)

NATIONAL HOUSING POLICY (2018 – 2025)

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FOCUS 1

5 STRATEGY

FOCUS 2

4 STRATEGY

FOCUS 3

2 STRATEGY

FOCUS 4

2 STRATEGY

FOCUS 5

(2018 – 2025)

3 STRATEGY

5 FOCUS, 16 STRATEGIES, 57 ACTION PLANS

NATIONAL HOUSING POLICY (2018 – 2025)

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CLUSTER OF DRN (2018 – 2025)

01 05

08

02

04

03

06

07

CLUSTER 4

Maintenance

CLUSTER 1

Policy and

Legislation

CLUSTER 2

Standard of

Procedure (SOP) and

Guidelines

CLUSTER 3

Studies And

Research

CLUSTER 6

Construction

Technology

CLUSTER 5

Monitoring and

Governance

CLUSTER 8

System and

Digitilisation of

Data

CLUSTER 7

Community

Development

NATIONAL HOUSING POLICY (2018 – 2025)

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DRMM FOCUSES

05

02

04

03

06

07

Facilities &

Amenities

Location

Construction

Density & Plot

Ratio

Cost

reduction

Category of

pricing

End Financing

NATIONAL AFFORDABLE HOUSING POLICY (DRMM)

01

Transit Oriented

Development

(TOD)

900 sqft minimum

IBS & BIM

QLASSIC

High rise – 120 –

150 units / acre

Landed – 20

units / acre

Kindergarten,

Mosque, Playground,

garbage chute,

Multipurpose Hall etc

RM150,000 & below

RM300,000 & below

• Government

land

• Development

& utility

charge

• Top-up fund

• Flexible

financing

scheme

• Cagamas

Berhad

Guarantee

• Longer

mortgage

Term (LPPSA)

• Built to Rent

• FundMyHome

(Crowdfunding) 16

WAY FORWARD

RECOMMENDATIONS & WAY FORWARD

1 6

5 2

4 3

01 06

03 04

02 05

IMPROVING AFFORDABLE

HOUSING PROVISION BASED

ON LOCALITY AND NEEDS

ENSURING GOOD QUALITY

HOUSING FOR ALL

IMPROVING HOUSING AND TRANSPORTATION

COORDINATION FOR BETTER QUALITY OF LIFE

STRENGTHENING INSTITUTIONAL CAPABILITIES

TO DELIVER NATIONAL HOUSING POLICY

ENSURING QUALITY AND COHESIVE

NEIGHBOURHOODS

IMPROVING AFFORDABLE

HOUSING FINANCIAL

ACCESIBILITY

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Increase the supply

of affordable

housing.

Developing

localised housing

affordability

threshold

Review Housing

Component Cost.

Shifting the

development of

affordable houses

towards Build-then-

Sell (BTS).

Encourage the

construction of

Retirement Village

that can offer a

good quality of life

for senior citizen.

1 2 3 4 5

1. IMPROVING AFFORDABLE HOUSING PROVISION BASED ON LOCALITY AND NEEDS

19

06 05

Mortgage

Guarantee

04

Shared Ownership

and Home Equity

03

Strengthening the

rental market

02

Incentives given to

buyers and

developers

01

Rent to Own (RTO)

Programme

2. IMPROVING AFFORDABLE HOUSING FINANCIAL ACCESSIBILITY AND VIABLE

20

Special Financial

Package for

Individual

Landowner

ENSURING GOOD QUALITY HOUSING

FOR ALL

02

03

04

05

3. ENSURING GOOD QUALITY HOUSING FOR ALL

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• Implementing Quality Requirement of Housing Standard in new housing and redevelopment guidelines.

Guideline

• Compulsory QLASSIC certification based on the Construction Industry Standard Quality Assessment System for Building Works Construction (CIS 7);

• Use life-cycle costing to support a more informed decision-making process on technology choices; and

• Leveraging on technology and its supporting ecosystem to improve the quality of house.

How

• Encourage the developers to use the latest technology to improve efficiency and reduce delivery period and wastage.

Incentive

01 Establishing an integrated housing database system

• Consolidating data and addressing data gaps to advance national housing research;

• Establishing Big Data Analytics (BDA) to consolidate data from various agencies and making analysis on used-case; and

• Incorporate the implementation of consolidated data into appropriate act or regulations

02 Centralisation of affordable housing initiatives

• Annual meeting of National Affordable Housing Council chaired by YAB PM that synchronises all public affordable housing schemes under one roof

4. STRENGTHENING INSTITUTIONAL CAPABILITIES TO DELIVER NATIONAL HOUSING POLICY

* As in PH Manifesto 22

01

02

03

Providing and maintaining quality amenities and services in residential neighborhoods to support community life.

Revitalizing the role and vibrancy of communities in strengthening neighborhood quality.

Build the capacity of communities in ensuring quality neighborhoods

init iatives through National Community Policy

01 01

Providing and maintaining quality amenities and services in residential neighborhoods to support community

l ife

02 02

03 03

5. ENSURING QUALITY AND COHESIVE NEIGHBOURHOODS

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Revitalizing the role and vibrancy of communities in strengthening

neighborhood quality 04 04

Strengthening management and maintenance of public and low-cost

private housing

• Housing Management Corporation

01 Establishing an integrated housing database system and an efficient applicant registry through:

• Consolidating data and addressing data gaps to advance national housing research

• Establishing Big Data Analytics (BDA) to consolidate data from various agencies and making analysis on used-case.

• Incorporate the implementation of consolidated data into appreciate act or regulations

02 Strengthening roles and function of single entity agency;

• Annual meeting of National Affordable Housing Council chaired by YAB PM (Manifesto PH) that synchronises all public affordable housing schemes under one roof

03 Rebranding PR1MA program to be the developer and facilitator of affordable housing (Manifesto PH).

Streamlining housing and

sectorial planning processes

in regional, structure, local and

special area plans;

And increase the effectiveness

of public participation.

Strengthening the capacity

of state and local authorities

to monitor and integrate

housing and transportation

considerations at the planning

and implementation levels.

01 02

6. IMPROVING HOUSING AND TRANSPORTATION COORDINATION FOR BETTER QUALITY OF LIFE

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AH and PH Mapping 04

Land Management - FLC - State Government - Individual

02

PLANNING 1 DEVELOPMENT 2 OWNERSHIP/

RENTAL

3 HOUSING CYCLE 4 MONITORING 5 POST DEVELOPMENT 6

New Single Entity 01

Integrated Database System

03

Quality Housing Standard (National Housing Standard)

05

Commercial Development (Commercial Act) research 06

Wakaf Land Development Anct research 07

Development Coordination of 1 Mill. AH • Federal • State • Private

Housing Development

Cost Effective,‘JIT’ and Quality: • Construction

Cost– Standard Design Technology

• Complience Cost / Utility Charge

Financing Scheme(Ownership)

01

Depositku

Flexi Financing

Scheme

Subsidy Scheme

Cagamas Berhad

Guarantee

Top-up Fund

FundMyhome

(Crowdfunding)

Rent-To-Own (Ijarah) 02

Rental (Residential Tenancy Act) 03

Built-To-Rent 04

National Affordable Housing Council (MPMMN)

Cost of Living Council • Housing

Committee Meeting

National Housing Policy (DRN) Monitoring Committee

Community Management

Housing Outcome Research

National Housing Research

Non-Citizen House Ownership

01

02

03

01 01

02

01

03

04

03

118 Act Conventional Syariah’ RTO

08

Monitoring & Coordination of 1 Million AH Steering Committee

02 Maintenance & Management

02

Redevelopment 03

CONTROL AND ENFORCEMENT

01 NATIONAL LAND CODE

(ACT 56)

AH Public

02 ACT 118

03 ACT 133

04 ACT 172

05 ACT 318

06 ACT 757

07 ACT 739 (PR1MA ACT)

08 ACT 3P

10

11

RESIDENTIAL

TENANCY ACT

COMMERCIAL

DEVELOPMENT ACT

09 WAKAF LAND

DEVELOPMENT ACT

WAY FORWARD OF AFFORDABLE HOUSING

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