'S'wak's sky-high housing prices due to lack of policy'

The policy of the Sarawak state government on housing and its links with crony companies are the main culprits for the drastic rise in prices of houses in the state, alleged the Sarawak Democratic Action Party (DAP).

This has made it very difficult for middle income families to afford to buy houses, it claims.

"The state government has a part to play in this because it has nothing allocated for housing development in its budgets for 2012 and 2013, said state DAP secretary Chong Chieng Jen (right).

"This is a matter of demand and supply. If the government has allocated funds for building medium cost houses, costs will be kept down and middle-income families will be able to afford to buy the houses.

Chong alleged that the state government however did not have such a facility as it wanted cronies to benefit.

"We know a few of the largest housing developing companies in Sarawak are politically linked to BN leaders and that is why our house prices are so high.

"When there is a relationship between policy makers, private businesses and family businesses in the building and selling of houses, policies will be such so as to ensure such businesses will not be adversely affected.

"That is why there is no budget for medium cost houses in Sarawak so that all these cronies can easily sell their houses at high prices," he said.

'House prices skyrocketing'

Chong was commenting on a statement issued by Tan Kai, Youth Chief of Sarawak United People's Party.

Tan, who has been named by his party to contest Bandar Kuching, attributed the skyrocketing house prices in the state to speculation by a group of housing companies.

In a press statement last week, Tan urged the state government to build more medium-cost houses.

He said that the property market had become a tool for speculative investment in recent years coupled with the increasing demand for houses that had resulted in surging prices, affecting many.

Reacting to Tan's statement, Chong said that Tan should have information on companies responsible the rising prices.

"If he is so concerned about the high cost of houses, he should have the guts to expose these companies even if they are linked to BN leaders, members and families, and deal with the issue from the point of policy.

"This is because it is the government's policy that is the main cause for the sky-rocketing of house prices."

In Kuching prices for medium-cost houses range from RM300,000 to RM400,000. In certain parts of the city semi-detached houses cost up to a RM 1 million each.

The writer, who uses a pseudonym, is based in Sarawak.