Large real estate developers are finding it difficult to offer affordable housing projects, SkyWorld group managing director Ng Thien Phing said today.
Speaking to reporters after a topping out ceremony for the Sky Awani 2 project, Ng said government intervention was necessary to encourage developers.
"There's a lot of demand. For instance, we received 17,000 applications for Sky Awani 1.
"Developers are keen, but it's not cost effective (to do so). Only a few companies such as SkyWorld (are doing it).
"We urge the government to consider a cross-subsidy scheme, such as abolishing certain fees to help developers offer affordable and quality homes," he noted.
Ng pointed out that under current conditions, developers have to price units above RM300,000 in order to make a profit.
Launched in 2016, Sky Awani 2, which mostly consists of 800 sq ft units, was priced at around RM300,000 per unit.
SkyWorld was among the companies that participated in the Rumawip scheme, which has now been renamed Residensi Wilayah.
Federal Territories Minister Khalid Abdul Samad, in his speech for the event, urged developers to ensure that future Residensi Wilayah projects will offer at least 900 sq ft living space, while maintaining prices at around RM300,000.
He also hoped developers participating in the scheme would meet Qlassic (quality assessment system in construction) standards set by the Construction Industry Development Board (CIDB).