BN strategic communications deputy director Eric See-to has taken issue with Seputeh MP Teresa Kok’s claim that the Kuala Lumpur City Hall (DBKL) sold prime land in Taman Desa below market price, calling it "malicious and misleading".
Saying that the land was sold below market value to accommodate affordable housing, he asked if the DAP lawmaker was just unhappy that low-income residents would be staying in her "upmarket" constituency.
Earlier today, Kok called for an investigation by MACC into the sale of the 7.5-acre Residensi Desa Satumas for just RM24 million, five times less than the price it could have fetched on the market.
Kok (photo) based her claim on Series 2 of the 2016 Auditor-General's Report, which stated that there was no evidence to show land valuation had been conducted on the deal, leading to the bidding price falling below market valuation.
According to See-to, however, what Kok did not acknowledge was that the plot of land was used to build a federal affordable housing project, called Rumawip or Federal Territories Housing Scheme – meaning that its value cannot be compared to that of commercial land.
“The federal government has planned to build 80,000 units of Rumawip from 2014 to 2018.
“Despite its strategic location near the city centre, this Taman Desa land cannot be used to build anything else - not luxury condominiums, offices nor malls.
“Therefore, the land value cannot be compared to the commercial land value that can be used to build more profitable projects,” he said in a statement.
Citing a property listing on EdgeProp, See-to also claimed that the 3,002 units of Residensi Desa Satumas will be priced at 230,000 for 850 sq ft each, which works out to RM270psf.
He contended that the RM270psf price was “great value” given its location in the Klang Valley, and contrasted it to affordable housing projects in DAP-lead Penang, which he said retail for at least RM400psf.
To illustrate his point, See-to pointed to the affordable housing project on the site of the fatal Tanjung Bungah landslide, which he said was selling at RM430,000 for 800 sq ft, which works out to RM500psf.
“(This is) almost double the price of the Taman Desa project.
“So, Kok should explain what is wrong with the federal government making a loss on its land in order to subsidise and ensure Malaysians have access to affordable housing?"