Glomac Bhd, which is launching a RM710mil mixed housing project in Bukit Batu, Johor, in a joint venture with Kumpulan Prasarana Rakyat Johor (KPRJ), is calling for state governments to follow Johor’s lead in keeping development charges and land premiums low.
“In Johor, the state government has created a good environment for developers to build affordable homes by not introducing excessive development charges and keeping the land premium from skyrocketing,” said group managing director and chief executive director Datuk Seri Fateh Iskandar Mohamed Mansor.
Developers in Selangor, where most of Glomac’s projects were located, had to pay 18% premium of the land costs from the previous 6% in the past three or four years, he said.
“Development charges was also introduced where developers have to pay 5% from the project’s total construction costs as well as an Infrastructure Service Fund of 3% from the GDV (gross development value),’’ he added.
Glomac and KPRJ is building 1,705 terrace houses on a 70.5 ha in Bukit Batu, Kulai.
“Of the total, 40% are affordable units and community homes,” he said.
He added that the first phase would be launched next month and was slated to be completed in 24 months.
Fateh said the housing project would be completed in nine phases over the next seven to nine years. - By The Star