Use vacant property for youth housing, says ex-deputy minister

PETALING JAYA: Rather than develop new residential and commercial projects while there remains a property overhang, a former deputy minister and town planner supports converting existing abandoned or vacant properties into affordable youth housing.

The federal territories ministry announced in December it would be developing 10,000 affordable homes for young people. However, former deputy housing minister Raja Kamarul Bahrin said the government would be better off repurposing vacant properties in urban areas.

“Since we are already short of affordable housing for young people, why not look at what we already have?” he asked.

Kamarul urged the government to cut some of its red tape or waive some fees to encourage owners to better use their space. “I think it can be a win-win, as it creates affordable housing and owners are able to fill their properties.”

Developers can also be incentivised by the government to conduct renovation works if major changes are needed, with Kamarul saying the authorities need to “be more creative” in solving the property overhang and lack of affordable housing problems.

He said that hotels, for example, could turn a portion of their rooms into affordable long lease options to allow them to maintain revenue during the pandemic.

It was reported last year that there were over 63,000 completed but vacant properties in the country as of October, up from nearly 57,000 the year before.

Noor Rosly Hanif, an estate management professor at Universiti Malaya, said that conversions would still end up being cheaper than land acquisition and construction for developers.

However, he said any action would need to wait until the economy stabilises from the effects of the pandemic.

“Conversion makes a lot of sense, but we need to see what the market wants first, and that won’t be clear from another few years.”

“Then we can start to look at which areas have demand for what kinds of property, and see if there are ways to meet that with renovated spaces.”

He said that the new normal may bring about new demands for co-working spaces and flexible offices rather than large spaces, particularly for young workers, which could be another area where transformation efforts could be effective.

However, Anthony Cho, a Melaka based real estate developer doubts the feasibility of such proposals.

“Right now we don’t see a demand for these conversions, and we’re not seeing that from the B40 and M40. They are not looking for these kinds of residential places.”

He said that developers will always follow the demands of buyers, and will need to see demand from young people before they engage in these projects.

Source: FMT