KUALA LUMPUR: Property developers will have to work smarter and harder to make their projects successful amid the new requirement that housing projects must have at least one block for low-income groups, an industry specialist said.
Juwai IQI co-founder and group chief executive officer Kashif Ansari said while there may be a period of adjustment as developers learn to work with the new policy, similar requirements already exist overseas.
"Cities such as London, New York, Paris, and Sydney have similar requirements for some or all new residential construction. It can succeed here too.
"In New York City, for example, the construction of Via 57 West included 36 affordable apartments whose rental prices are designed to be affordable to people making less than the median income," he told Business Times today.
"Developers will have to work smarter and harder to make their new buildings successful under such a policy without financial strain. I'm confident the government and the industry can work together to fine-tune the requirements to efficiently and reliably produce affordable housing," he added.
Prime Minister Datuk Seri Anwar Ibrahim announced on Tuesday that future housing projects must include one or two blocks dedicated to affordable Madani units for lower-income groups.
He added that the government would expedite approvals for developers who meet all the requirements.
"For each new housing project, I've instructed the Federal Territories Department and KL City Hall to ensure that one or two blocks are allotted for Madani housing units for the people.
"We can provide leniency and expedite (the approval process), provided that there will be one or two blocks allotted for Madani housing units for the people," Anwar said.