{"id":1508,"date":"2018-12-31T03:52:10","date_gmt":"2018-12-31T03:52:10","guid":{"rendered":"http:\/\/pgawards.wpengine.com\/?p=1508"},"modified":"2021-06-04T14:08:57","modified_gmt":"2021-06-04T07:08:57","slug":"affordable-housing-sets-the-agenda-in-asia-pacific","status":"publish","type":"post","link":"https:\/\/www.asiapropertyawards.com\/en\/affordable-housing-sets-the-agenda-in-asia-pacific\/","title":{"rendered":"Affordable housing sets the agenda in Asia-Pacific"},"content":{"rendered":"

Creating quality affordable homes in the region’s overheating cities has never been more urgent\u2014which countries are stepping up to the plate?<\/strong><\/p>\n

\"\"
One of the top winners at the 2018 Asia Property Awards (Malaysia) is LBS Bina Group, whose LBS Skylake Residence won Best Mass Market Development (Condo) among other honours<\/figcaption><\/figure>\n

Spanning roughly a third of the earth<\/span>\u2019s landmass, the Asia-Pacific region is hom<\/span>e to more than 60<\/span>\u00a0percent<\/span>\u00a0of the world\u2019<\/span>s population<\/span>\u2014<\/span>and<\/span>\u00a0its<\/span>\u00a0rapidly growing\u00a0<\/span>cities are beginning to feel the pinch.\u00a0<\/span><\/p>\n

The urgent need to create<\/span>\u00a0quality\u00a0<\/span>affordable housing on limited land\u00a0<\/span>has become a defining iss<\/span>ue across the region<\/span>, where soaring property prices\u00a0<\/span>and stagnating<\/span>\u00a0incomes\u00a0<\/span>have left many<\/span>\u00a0struggling for a place to call home<\/span>.\u00a0<\/span><\/p>\n

But 2018 brought<\/span>\u00a0several breakthroughs on this critical front. Recent elections ushered in new administrations in Hong Kong,<\/span>\u00a0New Zealand<\/span>,<\/span>\u00a0and Malaysia<\/span>,<\/span>\u00a0all promising to cure their respective housing crises<\/span>\u00a0as a top priority<\/span>.\u00a0<\/span><\/p>\n

Innovative design and urban planning firms have cropped up across Asia, breathing new life into mass housing developments and\u00a0<\/span>putting sustainability front and\u00a0<\/span>centre<\/span>.\u00a0<\/span><\/p>\n

Singapore<\/span>\u2019s public housing scheme, created in the 1960s,\u00a0<\/span>still shine<\/span>s as the region\u2019s gold standard<\/span>. Today,<\/span>\u00a0m<\/span>ore than 90<\/span>\u00a0percent<\/span>\u00a0of the city-state\u2019s\u00a0<\/span>5.6 million<\/span>\u00a0residents\u00a0<\/span>are\u00a0<\/span>homeowners<\/span>. While the Singapore model isn\u2019t easily exportable,\u00a0<\/span>many of\u00a0<\/span>its\u00a0<\/span>neighbours<\/span>\u00a0are finding their own unique solutions<\/span>.\u00a0<\/span><\/p>\n

Malaysia\u00a0<\/span>suffers no shortage of innovative developers<\/span>; with more land and lower costs than\u00a0<\/span>neighbouring<\/span>\u00a0Singapore, the Southeast Asian nation seems to be enjoying a steady emergence from its years-long property malaise.\u00a0<\/span><\/p>\n

Political headwinds may have helped. In May, Malaysian voters decisively ousted the administration of former Prime Minister Najib Razak<\/span>, who was deeply embroiled in the 1MDB<\/span>\u00a0embezzlement scandal. The new government of Mohammad Mahathir<\/span>, who returned to power at the age of 93 on a promise of cleaning up corruption and shoring up investor confidence,<\/span>\u00a0swiftly began a wholesale undoing of Naj<\/span>ib\u2019s policies<\/span>.<\/span><\/p>\n

Home-grown<\/span>\u00a0firms were\u00a0<\/span>more than\u00a0<\/span>r<\/span>eady for\u00a0<\/span>change<\/span>,<\/span>\u00a0and have seized the opportunity<\/span>. LBS Bina Group, based in Kuala Lumpur,\u00a0<\/span>is among the most prolific\u00a0<\/span>when it comes to creating\u00a0<\/span>large scale, community-oriented housing, launching<\/span>\u00a0successful\u00a0<\/span>projects<\/span>\u00a0in the Klang Valley, Johor<\/span>,<\/span>\u00a0and K<\/span>uala Selangor.\u00a0<\/span><\/p>\n

LBS Bina swept this year\u2019s Property Guru Asia Property Awards, recognized as Malaysia\u2019s Best Developer and making off with a cache of othe<\/span>r\u00a0<\/span>honours<\/span>\u00a0for innovation in mass-<\/span>market condominiums, corporate social responsibility<\/span>,<\/span>\u00a0and sustainability.\u00a0<\/span><\/p>\n

Having already gained a strong foothold, the firm now seeks to lead the way by l<\/span>owering<\/span>\u00a0construction costs through an\u00a0<\/span>industrialized building\u00a0<\/span>system<\/span>\u00a0of pre-cast concrete<\/span>\u00a0that reduce<\/span>s<\/span>\u00a0the need for\u00a0<\/span>labour<\/span>. Ong Wei Ling,\u00a0<\/span>a spokesperson<\/span>\u00a0for<\/span>\u00a0LBS<\/span>\u00a0Bina<\/span>, says the method results in\u00a0<\/span>\u201ccleaner, neater<\/span>,<\/span>\u00a0and safer construction sites<\/span>\u201d completed in a fraction of the time, \u201c<\/span>helping developers deliver value to invest<\/span>ors or buyer<\/span>s awaiting their<\/span>\u00a0dream home.\u201d<\/span><\/p>\n

Other firms such as UEM Sunrise Berhad, one of Malaysia\u2019s largest developers,\u00a0<\/span>and OCR Berhad Group have been<\/span>\u00a0among the most strident designers<\/span>\u00a0of af<\/span>fordable housing, the latter serving as project manager for the massive Yayasan Pahang development in Mukim Penor. Once completed, it is expected to create<\/span>\u00a0roughly 25,000 units<\/span>.<\/span><\/p>\n

\"\"
Citiesto by Kien A Corporation won Best Affordable Condo Development (Ho Chi Minh City) at this year\u2019s Propertyguru Vietnam Property Awards<\/figcaption><\/figure>\n

Smaller<\/span>\u00a0than the U.S. state of Rhode Island, with nearly seven times the population<\/span>,<\/span>\u00a0Hong Kong is home to about 7.4 million people crammed into 2,754 square kilomet<\/span>r<\/span>e<\/span>s packed with high-rises divvied\u00a0<\/span>up\u00a0<\/span>into\u00a0<\/span>miniscule<\/span>\u00a0units<\/span>. Year after year, this semi-autonomous region of China is named\u00a0<\/span>one of the most expensive cities<\/span>\u00a0in t<\/span>he world, a vital<\/span>\u00a0gateway between East and West<\/span>\u00a0that costs an average of\u00a0<\/span>USD<\/span>28,000 per square meter<\/span>.<\/span><\/p>\n

\u201c<\/span>The Hong Kong problem is quite unique<\/span>\u00a0and is complicated by the fact that Hong Kong just doesn\u2019t have enough land<\/span>,\u201d says David Ji, director and head of research and consultancy for g<\/span>reater China<\/span>\u00a0at Knight Frank. \u201cT<\/span>hey have to squeeze as much out of it a<\/span>s they can.\u201d This conundrum has put Hong Kong\u2019s policymakers in the uncomfortable position of h<\/span>aving to either create new land<\/span>masses or convert old<\/span>er<\/span>\u00a0properties for new use.\u00a0<\/span><\/p>\n

\"\"
Topped by an exclusive rooftop garden, Star Polaris 23 by Borey Peng Huoth Group won Best Affordable Condo Development in Phnom Penh this year<\/figcaption><\/figure>\n

Chief Executive Carrie Lam, who assumed the territor<\/span>y\u2019s highes<\/span>t office in 2017, has said\u00a0<\/span>solving the city\u2019s housing crisis\u00a0<\/span>is\u00a0<\/span>among\u00a0<\/span>her top priorities.\u00a0<\/span>While plans to build affordable hous<\/span>ing on roughly 1,700 hectares of<\/span>\u00a0artificial islands<\/span>\u2014<\/span>a project called\u00a0<\/span>Lantau Tomorrow Vision<\/span>\u2014<\/span><\/em>have come under criticism, she may have few viable alternatives to land reclamation. Property experts sa<\/span>y Lam has made strides with\u00a0<\/span>long-term housing goals, but is bound to face opposition because she<\/span>\u00a0has yet to come up with short-<\/span>term solu<\/span>tions to help the ma<\/span>ny Hong Kongers who need homes now<\/span>.\u00a0<\/span><\/p>\n

\u201c<\/span>A<\/span>\u00a0comprehensive proposal has been tabled, which has never happened before<\/span>,\u00a0<\/span>and\u00a0<\/span>a<\/span>s a long-term pr<\/span>oposal this is a positive step,\u201d says\u00a0<\/span>Ji.\u00a0<\/span>\u201cBut<\/span>\u00a0a<\/span>ll these measures are\u00a0<\/span>planned fa<\/span>r<\/span>\u00a0in\u00a0<\/span>the future, we\u2019re looking at\u00a0<\/span>five<\/span>\u00a0to\u00a0<\/span>10 years down the line, and b<\/span>uyers still find it difficult to get on the property ladder.<\/span>\u201d<\/span>\u00a0While prices have risen for 20 consecutive months, Ji says he expects some relief by year\u2019s end.\u00a0<\/span><\/p>\n

PEOPLE ARE RETHINKING AFFORDABLE HOUSING\u2014NOT AS A BURDEN THAT NOBODY WANTS TO BUILD, BUT TRYING TO PUT AFFORDABLE HOUSING INTO PRIVATE DEVELOPERS\u2019 PLANS<\/p><\/blockquote>\n

S<\/span>everal government<\/span>s<\/span>\u00a0in the Asia-Pacific<\/span>\u00a0have<\/span>\u00a0also<\/span>\u00a0mo<\/span>ved to limit foreign ownership<\/span>\u2014<\/span>due in part\u00a0<\/span>to concerns about Chinese expansionism<\/span>\u2014<\/span>b<\/span>ut experts say these policies are<\/span>\u00a0misguided.\u00a0<\/span>New Zealand\u2019s recent ban on foreign residential sales prompted the International Monetary Fund to warn that the policy was discriminatory.\u00a0<\/span><\/p>\n

When Malaysian premier Ma<\/span>hathir suggested curbing foreign<\/span>\u00a0ownership of\u00a0<\/span>units in\u00a0<\/span>the\u00a0<\/span>USD<\/span>100 billion<\/span>\u00a0Forest City\u00a0<\/span><\/em>project, the idea sent a chill through the investment community. \u201c<\/span>Permitting foreign investors to buy new housing obvious<\/span>ly increases demand for housing,\u201d says Brendan Coates, a fellow at Melbourne-based think tank the Grattan Institute, \u201cb<\/span>ut supply also increases if foreign investors enable developers to build more housing than otherwise<\/span>.\u201d\u00a0<\/span><\/p>\n

China\u2019s own reform of land and financial policies are working to keep investors well within its borders. Outbound capital limits have led many Chinese to invest closer to home, while land use regulations have been altered to require a percentage of mixed-income housing on large scale property developments to meet growing demand.\u00a0<\/span><\/p>\n

\u201c<\/span>I think in the greater C<\/span>hina regi<\/span>on, people are rethinking affordable<\/span>\u00a0housing<\/span>\u2014<\/span>not as a burden that nobody wants to<\/span>\u00a0build, but trying to put affordable<\/span>\u00a0housing into private\u00a0<\/span>developers\u2019 plans,\u201d\u00a0<\/span>says<\/span>\u00a0Ji, of Knight Frank<\/span>.<\/span>\u00a0\u201c<\/span>The trend is changing from \u2018whoever pays the highest price gets the land,\u2019 to a more\u00a0<\/span>targeted, controlled use of property<\/span>.<\/span>\u201d<\/span><\/p>\n

This issue originally appeared in\u00a0Issue No. 151<\/a>\u00a0of PropertyGuru Property Report Magazine<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Creating quality affordable homes in the region’s overheating cities has never been more urgent\u2014which countries are stepping up to the plate?<\/p>\n","protected":false},"author":2,"featured_media":19837,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[81],"tags":[],"class_list":["post-1508","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-in-depth","news_country-asia","news_author-feliz-solomon"],"acf":[],"yoast_head":"\nAffordable housing sets the agenda in Asia-Pacific | Asia Property Awards<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.asiapropertyawards.com\/en\/affordable-housing-sets-the-agenda-in-asia-pacific\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta 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