KOTA KINABALU: Sabah Housing and Real Estate Developers Association (Shareda) president Datuk Francis Goh, said the delay in giving approval was among the factors contributed to the high price of properties here.
The prices of properties in Sabah could be reduced by 10 per cent provided the State Government expedite the development approval orders in the housing industry.
He believed the issue could be addressed after Shareda along with Pertubuhan Akitek Malaysia (PAM), Association of Consulting Engineers Malaysia (ACEM) and the Institution of Engineers Malaysia (IEM) had submitted a joint memorandum to the Ministry of Local Government and Housing to look into the matter urgently.
“We have come up with a consensus and submitted a draft proposal outlining the measures for the State Government to expedite the development orders,” said Francis when unveiling Shareda Property Development Annual Report 2014 & Market Outlook 2015’ at Wisma Kinsabina yesterday.
The currently the developers have to wait 30 months to get their development plans (DP) approved and the delay had impacted the cost of their property developments, he said.
“If the approval of DPs can be shortened between six and 12 months, the property prices can be dropped by 5 per cent.
“Apart from that, it could be reduced by another 3 per cent if the Sabah Electricity Sdn Bhd (SESB) give us a waiver in the capital contribution,” said Francis.
And 2 per cent from relieve of overhead cost when the DPs is expedited, he added.
He said now the developers have to wait for the next 30 months to kick start their projects after they buy a piece of land and the costs incurred is RM1 million a month while waiting for the DPs to be approved.
“So whether you like it or not, the overhead costs are included into the selling prices,” stated Francis.
“Soon the property prices can be reduced by 10 per cent if the developers are given a relieve,” he said.
Francis also thanked Local Government and Housing Minister Datuk Seri Panglima Hajiji Noor for his understanding and supportive of the predicament faced by the developers in the housing industry.
“I think during his last winding-up speech at the State Legislative Assembly sitting, he proposed one of the method to expedite the DPs is to set up a one-stop approving centre in the respective local councils,” he recalled. – Sayangsabah