DESPITE being one of the most densely populated areas in Malaysia, demand for housing on Penang island remains high, as locals still shun the idea of living across the bridge on the mainland.

Almost half of the state’s estimated population of 1.75 million – or close to 800,000 – live on the 293 sq km island of Penang.

State government records from 2013 to 2017 show that 30,787 or 60.8% of 50,612 affordable home applicants are from the island, mostly from the northeast district (daerah timur laut or DTL).

DTL, where land is scarce, is the most popular place to live, even for low-income earners who cannot afford to buy their own homes and need to stay in public housing (PPR) units.

Out of 1,662 PPR applicants on the waiting list now, 1,129 (68%) are from DTL.

Despite mainland Seberang Prai being larger – 751 sq km or 71.66% of the state’s landmass – demand for affordable homes there is lower.

From 2013 to 2017, only 19,825 applications were received for affordable housing.

Fauzi Isa and Abdul Rahman were willing to wait five and nine years respectively to get their public housing units at the Taman Manggis flat in George Town in the heart of Penang island.

Rahman, 56, applied in 1999, and only got a unit in 2008 after the state government fell to then Pakatan Rakyat coalition.

“I used to live in the P. Ramlee area where it always flooded. It flooded in 2008 and the new Datuk Keramat representative Jagdeep Singh Deo came to visit the affected homes.

“After seeing mine, he said I should move. I finally got a unit at Taman Manggis after that.”

Even with the constant flooding in P. Ramlee, Rahman said he never thought of leaving George Town to move to the mainland, where PPR units are readily available.

It was the same for Fauzi, who was willing to wait to live in an area closer to his workplace.

Island jobs

Jagdeep, who is Penang’s housing exco, said DTL applicants want to stay on the island for the work opportunities.

Many PPR applicants rejected the mainland units and would rather “tumpeng” (live temporarily) with relatives while they waited for available island units, he said.

“When we ask why, they say they are islanders with jobs and kids schooling on the island.

“Commuting for work will be too costly for them. We cannot force people to move.”

State think-tank Penang Institute social studies and statistics programme head Ong Wooi Leng said the demand in DTL is higher because of the price of affordable homes in DTL and the high opportunity cost of moving to the mainland.

If the opportunity cost of moving is higher than the cost of waiting, a majority of the applicants would likely queue up for placements on the island, she said.

“The total cost of making the decision to move can be high when senior citizens and schoolchildren are involved. It can be difficult for a family to move to the mainland despite a wide range of affordable housing available.”

Affordable homes in DTL are also relatively cheaper compared with other typical housing units in the same district, Ong said.

“Most DTL apartments sell above RM500,000, but most affordable units are priced between RM200,000 and RM400,000.

“The price difference is significant to middle-income earners in DTL, making them more responsive to affordable projects in the district than others.”

Affordable housing in Penang, according to the state’s housing department website, are projects with prices from RM200,000 to RM500,000, RM42,000 low-cost (LC) and RM72,500 low-medium cost (LMC).

Applicants must be from Penang, residents or registered voters in the state, aged at least 21, and earning monthly household incomes of under RM2,500 to below RM10,000 depending on which type of houses they want to buy.

Building more PPRs

To address the low PPR housing stock on the island, Jagdeep said the Penang government is asking the federal government to build more projects.

PPR homes are built by the federal government and managed by state governments.

The state government is now in talks with the federal government to build PPR homes on two plots of land in Jelutong on the island, he said.

“They have agreed in principle. We are waiting for them to check the suitability of the land.”

Jagdeep said in less than five years, demand for homes on the mainland is expected to increase with the establishment of new satellite townships like Batu Kawan, and better accessibility and connectivity between the island and the mainland.

“We have 520 affordable and LMC units in Bandar Cassia, Batu Kawan ready with just the strata titles pending. Some 90% of the units are already sold.

“That shows that there is rising demand once you have the new township and public facilities up.”

Long-term solutions

Ong from Penang Institute said while it is not practical to tell islanders to move to the mainland, the density of future projects should be limited “to ensure liveability and prevent congestion”.

“Some ongoing projects are 40 to 50 floors with 15 units per floor. It will cause congestion. Such high density should be halted.”

The state should look at long-term measures like acquiring more units from developers to sell them at affordable prices to clear the long-waiting list of applicants, she said.

Developers selling affordable homes at higher prices by including extra parking lots and others should also be punished.

“This makes the units more affordable to higher-income groups instead. This could have contributed to the long waiting list.”

She also called for an enhanced housing monitoring and management system to deal with social and affordable housing applications and placements. – January 25, 2018.