A Beginner’s Guide to the Melaka Housing Board (LPM) and its Affordable Housing Schemes
What are the different Rumah Mampu Milik and other forms of assistance the Lembaga Perumahan Melaka provides?
Photo: Unsplash (@Hao Pan)
Famous for its Nonya food, Peranakan culture, beautiful ancient architecture, and breathtaking historic sites – guess where is this place in Malaysia?
You are absolutely right – it’s none other than Melaka! But today, we’re not going to discuss how beautiful this state is and all the famous historic and cultural sites to visit, but rather, the range of affordable housing programmes available for the community, thanks to the commendable efforts of the state government, through the Melaka Housing Board – or widely known as the Lembaga Perumahan Melaka (LPM).
Based on a report by Khazanah Research Institute in 2017, Melaka is categorised as one of the most affordable housing providers in the country. So, without further ado, let us walk you through who is the LPM, the importance of the LPM, and some of the affordable housing schemes offered by them!
First, let’s go through a little background
Photo: www.malacca.ws
Melaka is one of the smaller states in Malaysia with a total area of approximately 165,000 hectares. Dubbed Malaysia’s unofficial historic capital, it is well known for being one of the first UNESCO World Heritage Sites in Malaysia apart from George Town, Penang.
The state is administratively divided into three districts – Melaka Tengah, Jasin, and Alor Gajah. Alor Gajah, located in the north part of Melaka, is the largest district in the state, but Melaka Tengah, though the smallest district, has the highest urban density. This is because the Melaka Tengah district – with a total population of 579,000 – is the major destination for tourists with historical and cultural sites in the city centre.
In terms of housing affordability, Melaka has the best-priced affordable housing in Malaysia, with a good balance of supply and demand. In fact, according to a report by Khazanah Research Institute in 2019, Melaka is the only state in Malaysia that achieved a median multiple of 3.1 in 2016, indicating that housing in Melaka is affordable to its population. As a comparison, Kuala Lumpur scored at 4.9 and Pulau Pinang scored at 5.5, which are both ‘seriously unaffordable’.
In times of Covid-19
Photo: Unsplash (@Mika Baumeister)
Of course, Melaka’s property market was subdued when the pandemic struck in 2020. However, interestingly, amid the struggle to control the COVID-19 pandemic and the third Movement Control Order (MCO 3.0) which has undeniably hit Malaysia’s real estate industry hard, houses in Melaka are gaining in popularity amongst property buyers especially in districts such as Alor Gajah, Bukit Katil, and Melaka Tengah.
The thriving residential market in Melaka could be due to its property prices are one of the most affordable as compared to other states like Selangor, Kuala Lumpur, and Penang. Further, Melaka is a much more developed state in its entirety in terms of the property market compared to other states like Negeri Sembilan, which helped drive Melaka to the number one spot for property seekers.
Demand remained fairly strong for homes priced under RM500,000. As compared to high-end properties, affordable homes are easily sold in Melaka due to strong demand among local buyers for this category, especially landed houses. This is due to reasonable prices offered by the developers which match buyers’ income level with the property investments or purchases they make.
Besides, state intervention – through the active roles taken by the Melaka Housing Board (LPM) – in addressing affordability and homeownership effectively, is another important element that has driven housing affordability in Melaka.
So, who is the Melaka Housing Board (LPM)?
Photo: Lembaga Perumahan Melaka
Melaka is one of the few states in Malaysia to have established its own Housing Board, known as the Lembaga Perumahan Melaka (LPM). The LPM is a state government agency that oversees housing development projects in Melaka. The Board was established in 2002 through the passing of the Melaka Housing Board Enactment 2002.
Before the establishment of the LPM, housing development projects in the state were monitored by the Housing and Local Government units of the area. In fact, the Melaka state government is the second state to set up its Housing Board after the Selangor state government to strengthen the role of the state government in the housing sector, as well as to ensure the delivery of affordable housing units to the people properly and effectively.
With the motto of “Rumah Idaman Pelengkap Kehidupan”, which translates to “Dream Home Makes Our Lives Whole”, LPM plays an important role to realise and coordinate the development of low-cost and affordable housing in Melaka to achieve the goal of “One Family, One House”.
Their objectives are:
To plan, coordinate, implement, monitor, and maintain the development of housing projects.
To create a comfortable, harmonious, and safe housing environment.
To provide adequate affordable housing in line with the theme “One Family, One House”.
To provide quality services for every housing project.
To act as a One Stop Centre (OSC) for Housing.
To be the source and reference centre for housing information in the state of Melaka.
With a mission to make homeownership more affordable and accessible to people in Melaka, the state government aims to build over 48,000 units of affordable housing in the state in collaboration with the Federal government over the next five years.
19,232 of the units would be developed by the Melaka Housing Board (LPM), other state government agencies or departments, and private developers; while another 28,922 affordable housing units will be built by Federal departments or agencies.
What are the different types of affordable housing programmes offered by the LPM?
Photo: Berita Harian
Most of the housing developments that you see around Melaka are projects from LPM themselves. In line with the National Housing Policy (2018-2025), each housing scheme is aimed specifically at different target groups in the B40 (bottom 40%) income category.
To meet the increasing demand for affordable housing, LPM works with different developers from the private sector such as Scientex Heights Sdn Bhd, Home Spectrum Sdn Bhd, and Teladan Setia Sdn Bhd for development in specific areas. This is to ensure that Malaysians of all income levels, particularly the low-income earners, will have access to adequate, quality and affordable homes.
Demand in Melaka’s residential market, which has very much remained firm and resilient, differs from segment to segment. That is why all projects will be developed according to the living standards of different target groups in Melaka.
Before this, the LPM housing schemes had various names such as
Rumah Berkat (low-cost rental houses),
Rumah Kos Rendah (low-cost houses),
Rumah Sejahtera (low-cost houses),
Rumah Harapan (low-medium-cost houses),
Rumah Belia (affordable houses), and
Rumah Mampu Milik (affordable houses).
However, the LPM understands that all these names are confusing for the public. Hence, starting from 16 June 2020, they have rebranded those earlier names into 4 new categories:
wdt_ID
Former Category
New Category
1
Rumah Berkat (low-cost rental houses priced at RM150 per month)
LPM Rental House
2
Rumah Kos Rendah (low-cost houses priced at RM35,000 - RM42,000)
RMM “Type A”
3
Rumah Harapan (low-medium-cost houses priced at RM80,000 - RM100,000)
RMM “Type B”
4
Rumah Mampu Milik (affordable housing not exceeding RM180,000)
RMM “Type C”
The good news is, the affordable housing programmes by LPM is not only restricted to people living in Melaka but also open to all Malaysian citizens from other states to apply! However, priority is given to applicants born in Melaka.
What are the eligibility requirements?
Photo: Freepik (@jcomp)
Type A, B, and C housing schemes each have their own terms and conditions, depending on an applicant’s preference and income levels. Have a look below:
RMM “Type A” and RMM “Type B”:
Applicants must be Malaysian citizens.
Applicants must be 20 years old and above.
Income does not exceed RM 3,000 per month.
Never owned a house.
RMM “Type C”:
Applicants must be Malaysian citizens.
Applicants must be 20 years old and above.
Household income does not exceed RM 8,000 per month.
LPM Rental House:
Applicant and spouse are Malaysian citizens.
Must be a married couple.
Applicants are between 20 to 35 years old.
Applicant and spouse do not own a home.
Applicant works in Melaka.
Household income does not exceed RM 3,000 per month.
The rental period is only 3 years.
No criminal record.
If you are eligible and interested to apply, you will need to provide a range of documentation to confirm your eligibility for the housing scheme:
1 passport size photo
1 copy of applicant’s identity card
1 copy of spouse’s identity card
1 copy of Marriage Certificate or similar documentation (if applicable)
1 copy of Divorce Certificate or Death Certificate (if applicable)
1 copy of latest salary slip or income declaration form (applicant & spouse) certified by employer / MPKK
processing fee of RM10.00
1 copy of Birth Certificate for applicants from Sabah and Sarawak
How to apply?
Photo: Freepik (@yanalya)
Applications for LPM’s affordable housing schemes can be made by downloading and filling up the application form at: https://lpnm.gov.my/media/muat-turun/, and then submit it by hand to the LPM’s office in Ayer Keroh. The LPM’s office is also reachable for any inquiries from Monday – Friday, 8 AM – 5 PM at 06-2320450.
Alternatively, the application can also be done online through the following steps:
Make an application and fill in the required information.
Check status and feedback through the given contact information.
What properties do the LPM’s housing schemes apply to?
This list is taken from the official website of the Melaka Housing Board (LPM) and is up to date till 10 May 2021. With the support of private developers to produce affordable houses, the choices are aplenty. Each unit offered is subject to availability and the LPM advises applicants to apply for projects that are ‘under construction’. Check out some of the affordable housing projects below:
It is interesting to note that landed homes remain the property of choice among the local Melaka population. That is why most of the developers continue to focus on developing landed residential units to meet the increasing demand for affordable homes. Besides, most of the players in Melaka are local developers with a great understanding of the market.
Hence, for the past 24 years, we have seen Melaka is already ahead of many other states with one of the lowest residential overhangs in Malaysia, boosting a healthy and well-balanced supply and demand market situation. If you have not noticed the success of this small state in its provision of affordable homes, now you should!
Photo: Lembaga Perumahan Melaka
What other assistance does LPM provide?
Besides providing adequate affordable homes for the people, the LPM also leads maintenance projects for housing schemes under the state government. As cities become more congested with rural migrants as well as natural population growth, it is undeniable that some of the housing in the inner cities have started to deteriorate with old facilities.
The state government announced that they had allocated RM2.8 million to repair decayed houses, so that public flats and apartments could be maintained properly. This also means that homeowners do not have to pay out of their pockets for the repairs and upgrading works, which goes a long way to improving people’s welfare. The Melaka Housing Board uses its surplus funds and profits to repair such dilapidated houses in the villages, which helps to ensure everyone was accounted for in the state’s housing programmes.
Additional support by the state government
Photo: Bernama
Though not directly under the LPM’s initiative, it is important to note that all bodies including the state government work together closely to help locals own homes. In 2019, the state government took the initiative to implement a ‘Rumah Peduli’ programme – which is now rebranded as ‘Rumah Prihatin’ – in its bid to provide free homes to Melaka’s hardcore poor.
A house that costs RM30,000, consisting of 2 bedrooms and 2 bathrooms, will be 100% borne by the government if an applicant meets the eligibility requirements and successfully goes through the necessary approval.
This programme is intended to help poor households who own land but could not afford to construct their own houses. Up till July 2020, the ‘Rumah Prihatin’ programme has recorded a total of 127 houses being built. In fact, there are still several applications in the queue and are still in the procurement stage.
Summary
The Melaka Housing Board (LPM), together with the state government, is crucial in formulating policies to help improve home accessibility and affordability issues in the state, as well as to regulate how players in the industry can carry out their business in a professional manner so that homebuyers will not be exploited. Besides, the LPM also plays an important role in estate management and maintenance to ensure quality housing for all, especially for low-income families.
Through the state government and LPM’s active collaboration with developers in the private sector, we will certainly see more and more affordable housing units being built in years to come to meet the needs of the various levels of income and family status of society.
If you are interested and qualified to apply for the affordable housing programme in Melaka, be quick to apply as soon as possible! We hope you realise the dream of owning your own dream home because the numbers of affordable residential units being supplied are very limited!
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