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1 Copyright © 2018 ATSA Architects Published by ATSA Architects Sdn Bhd All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without written permission from the copyright owner. Disclaimers The information presented in this report has been assembled, derived and developed from various projects and design proposals carried out by ATSA. These are presented in good faith. The author and publisher have made every reasonable effort to ensure that information presented is accurate. It is the responsibility of all users to utilize professional judgment, experience and common sense when applying information presented in this book. This responsibility extends to the verification of local codes, standards and climate data. Every effort has been made to ensure that intellectual property rights are rightfully acknowledged. Omissions or errors, if any, are unintended. Where the publisher or author is notified of an omission or error, these will be corrected in subsequent editions. Publisher ATSA Architects Sdn Bhd 45 Jalan Tun Mohd Fuad 3 Taman Tun Dr Ismail 60000 Kuala Lumpur Malaysia Website: www.atsa.com.my Email: [email protected] Author Ar. Azim A. Aziz Co-Author and Designed by Mohamad Haziq Zulkifli 2 AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES TABLE OF CONTENTS Pages Pages 5.5.1 Numbers of Affordable Housings that Greater 73 List of Tables, Graphs and Figures 4 Kuala Lumpur Will Need in The Future 7 1.0 ABSTRACT 5.5.2 Land to Build Affordable Housings: 73 5.5.3 Density of Units To Be or Can Be Built in the 74 2.0 INTRODUCTION 8 Greater Kuala Lumpur Area 5.5.4 Authority Imposition and Requirements 76 9 3.0 BACKGROUND STUDIES AND FINDINGS 5.5.5 Future and Predictions 77 9 3.1 POPULATION OF MALAYSIA AND GREATER KUALA LUMPUR 5.5.6 Future of Science and Technology in Building 77 (KLANG VALLEY) 5.5.7 Working Together 78 15 3.2 AGEING POPULATION OF MALAYSIA 5.5.8 Architectural Design Solutions for Affordable 103 3.3 DEFINITIONS OF AFFORDABLE HOUSINGS 17 Housings 3.4 OVERVIEW OF AFFORDABLE HOUSINGS IN MALAYSIA 19 24 3.5 AFFORDABLE HOUSING PRICES IN MALAYSIA 6.0 FINAL OBSERVATIONS 120 3.6 STATE OF INCOME IN MALAYSIA 25 27 3.7 GROUP INCOME EARNERS VS HOUSING PRICES 7.0 BIBLIOGRAPHY 122 4.0 ANALYSIS AND DISCUSSIONS 33 4.1 OVERVIEW OF AFFORDABLE HOUSING IN GREATER 33 KUALA LUMPUR 4.2 FUTURE INCOME GROUP EARNERS 34 4.3 CASE STUDY: PUBLIC HOUSING IN SINGAPORE 40 4.4 HOUSING PRICES AND CONSTRUCTION COST IN GREATER 41 KUALA LUMPUR 4.5 GROWTH PERCENTAGE OF HOUSING SUPPLY AND 59 AVAILABLE HOUSING UNITS IN GREATER KUALA LUMPUR 4.6 SURPLUS OF HOUSING SUPPLY 61 4.7 PREDICTION OF HOUSING SUPPLY IN GREATER KUALA 62 LUMPUR 5.0 CONCLUSIONS AND RECOMMENDATIONS 68 5.1 CHALLENGES 68 5.2 POSITIVE APPROACHES 69 5.3 CONTRIBUTORY FACTORS ON RISING COSTS OF AFFORDABLE 69 HOUSES 5.4 APPROACHES TO CONTROL THE CURRENT HOUSING PRICES 69 5.5 RECOMMENDATIONS 71 3 AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES LIST OF TABLES Pages Pages Table 1.1: Total household income, population and living Table 2.11: Cost breakdown for T20 terrace house 44 10 quarters (houses) in the Greater Kuala Lumpur and Malaysia in Table 2.12: Cost breakdown for T20 semi-D house 45 2016 Table 2.13: Cost breakdown for T20 bungalow house 46 Table 1.2: Malaysian population from 1957 to 2100 10 Table 2.14: Cost breakdown for M40 house 47 Table 1.3: Population of Greater Kuala Lumpur from 1957 to 13 Table 2.15: Cost breakdown for B40 house 48 2100 Table 2.16: Housing construction cost in Kuala Lumpur in 51 Table 1.4: Population growth assumption of Greater KL and 14 2015 Table 2.17: Average house prices in Kuala Lumpur from Malaysia from 1957 to 2100 52 Table 1.5: Malaysian age groups from 1957 to 2100 15 1999 to 2016 Table 2.18: Average house prices in Selangor from 1999 Table 1.6: Population growth and immigration rate in Malaysia 16 to 2016 53 from 1957 to 2100 Table 2.19: Number of existing houses in Greater Kuala Table 1.7: Housing price affordability rating 17 Lumpur 59 Table 1.8: Pricing ranges of various affordable housings 18 Table 2.20: Houses supply in Greater Kuala Lumpur 60 24 Table 1.9: Pricing ranges of low cost and affordable housings Table 2.21: Assumption of housing supply in Greater 62 25 Table 1.10: Income, housing price and affordability level Kuala Lumpur from 2020 to 2100 26 Table 1.11: Median monthly household income of Malaysian Table 2.22: Population of Greater Kuala Lumpur from 64 and Greater Kuala Lumpur population 2010 to 2020 Table 1.12: Population percentage of income groups in urban 28 Table 2.23: Assumption demands of affordable housings 65 Malaysia from 2020 to 2100 Table 2.1: Median household income of Malaysia and Greater 33 Table 2.24: Sample units of affordable housings. 66 Kuala Lumpur Affordability level is measured based on the income Table 2.2: Percentage of income groups in urban Malaysia from 34 requirements and offered prices Table 3.1: Mercer Quality of Living Rankings 2017 2020 to 2100 81 Table 2.3: Percentage of T20 income group in Malaysian urban 35 population LIST OF GRAPHS Graph 1.1: Malaysian population from 1957 to 2100, Table 2.4: Percentage of M40 income group in Malaysian urban 36 10 population based on data projection by Department of Statistics, Table 2.5: Percentage of B40 income group in Malaysian urban 36 Malaysia and UN Department of Economic and Social population Affairs Graph 1.2: Graph of the Malaysian population from 11 Table 2.6: Affordable housing schemes in Greater Kuala Lumpur 37 years 1950 to 2100, with the low variant stands at 26 Table 2.7: Comparison data of Greater Kuala Lumpur, 38 million, 41 million (medium variant) and up to 62 million Singapore and Hong Kong (high variant) in the year 2100 (UN Department of Table 2.8 : Comparative table of affordable housing schemes in 39 Economic and Social Greater Kuala Lumpur, Singapore and Hong Kong Graph 1.3: Population of Greater Kuala Lumpur from 13 Table 2.9: Project examples of land usage 41 1957 to 2100 Table 2.10: Cost breakdown for high rise T20 house 43 4 AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Pages Pages Graph 1.4: Population growth assumption of Greater KL and 14 Graph 2.13: Average house prices in Selangor from 1999 53 Malaysia from 1957 to 2100 to 2016 Graph 1.5: Malaysian age groups from 1957 to 2100 15 Graph 2.14: Construction cost against the housing prices 54 Graph 1.6: Population growth and immigration rate in Malaysia 16 in Kuala Lumpur from 2005 to 2015 from 1957 to 2100 Graph 2.15: Construction cost against selling price of 55 Graph 1.7: Average land price in Kuala Lumpur from 1957 to 22 bungalow house n Kuala Lumpur from 2005 to 2015 2017 Graph 2.16: Construction cost against selling price of 56 Graph 1.8: Average land price in Selangor and Negeri 23 terrace house n Kuala Lumpur from 2005 to 2015 Sembilan from 1957 to 2017 Graph 2.17: Construction cost against selling price of high rise houses n Kuala Lumpur from 2005 to 2015 57 Graph 1.9: Pricing ranges of low cost and affordable housings 24 Graph 2.18: Construction cost per square metre in major Graph 1.10: Median monthly household income of Malaysian 26 and Greater Kuala Lumpur population Asian countries 58 Graph 2.19: Growth percentage of housing supply in Graph 1.11: Percentage distribution of group income earners in 59 27 Greater Kuala Lumpur from 1991 to 2010 urban Malaysia Graph 2.20: Percentage of vacant houses in Greater Graph 1.12: Population percentage of income groups in urban 61 28 Kuala Lumpur from 2000 to 2010 Malaysia Graph 2.21: Factors influencing vacant housing units 61 Graph 1.13: Median yearly household income vs housing prices Graph 2.22: Assumption of housing supply in Greater 62 29 in Kuala Lumpur from 1999 to 2014 Kuala Lumpur from 2020 to 2100 Graph 1.14: Median yearly household income vs housing prices Graph 2.23: Assumption demands of affordable housings 65 in Selangor from 1999 to 2014 30 from 2020 to 2100 Graph 1.15: Malaysian GDP growth from 1960 to 2020 31 Graph 2.24: Comparison of affordable housing prices 67 Graph 2.1: Percentage of income groups in urban Malaysia 34 from 2020 to 2100 LIST OF FIGURES 12 Graph 2.2: Land use breakdown for affordable housing projects 41 Figure 1.1: Malaysian population from 1957 to 2100 Figure 1.2: View of Kampung Baru in Kuala Lumpur circa 19 Graph 2.3: Total cost breakdown 1960’s Graph 2.4: Cost breakdown for high rise T20 house 42 Figure 1.3: The former Pekeliling flats in Jalan Tun Razak, K. 19 Graph 2.5: Cost breakdown for T20 terrace house 43 Lumpur Graph 2.6: Cost breakdown for T20 semi-D house 44 Figure 1.4 & 1.5: View of squatters in Kg Kerinchi, circa 20 Graph 2.7: Cost breakdown for T20 bungalow house 45 1990’s, (left) now being replaced by Bangsar South Graph 2.8: Cost breakdown for M40 house 46 development (right) in Kuala Lumpur Graph 2.9: Cost breakdown for B40 house 47 Figure 1.6: Land Price Per Square Foot (PSF) in Selected Areas of Greater Kuala Lumpur / Klang Valley 21 Graph 2.10: Housing prices vs construction cost in Greater 48 Figure 1.7: Map of Greater Kuala Lumpur or Klang Valley 32 Kuala Lumpur 49 Figure 2.1: Population growth in Greater Kuala Lumpur 63 Graph 2.11: Construction cost per square metre in Kuala from 2020 to 2030 Lumpur from 2005 to
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