By Danial Dzulkifly
SHAH ALAM, Feb 3 — Property prices across the Klang Valley are set to climb this year, but buyers of state housing projects can breathe easy as the Selangor government assures there will be no unreasonable price hikes.
This was the commitment given by state executive councillor for housing Borhan Aman Shah, who said the administration will not approve price hikes of affordable homes willy-nilly.
He vowed to keep housing accessible, especially for the B40 group.
Borhan explained that if any of the state housing projects like Rumah Selangorku Harapan or Rumah Idaman were to exceed RM250,000, developer must offer add-ons — such as fully or partially furnished units or free appliances — to ensure homebuyers get their money’s worth.
“There is a possibility of rising prices (in the Klang Valley) as developers face rising costs in terms of materials and labour, but we would not simply allow a price increase (for state housing schemes).
“For example, we have the Rumah Selangorku Harapan and Rumah Idaman, which could cost more, but we often condition developers to offer add-ons such as furniture and appliances, a term these developers are often happy to abide by,” he said.
Acknowledging challenges faced by developers in building affordable homes, Borhan said the state government can waive development fees, among others, to alleviate the financial pressure and ensure they deliver the units for their buyers.
“We can always discuss with these developers and see where it is appropriate to help them,” he said.
Previously, Borhan announced the state would exempt property developers from development fees for several affordable housing schemes, including Rumah Idaman and Rumah Selangorku Harapan, effective last month.
He said the exemption does not apply to open market and other subsector projects, and added that the state is aiming to provide 200,000 affordable homes by 2028.
The state administration is looking to deliver about 40,000 homes per year.
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State executive councillor for housing and culture Borhan Aman Shah speaks to the media at the Rehda Selangor Housing Convention, held at Setia City Convention Centre in Shah Alam, on October 10, 2024. — Picture by NUR ADIBAH AHMAD IZAM/MEDIA SELANGOR[/caption]
Solutions to homeownership
State executive councillor for local government Dato’ Ng Suee Lim said property prices in cities under the Selangor Greater Klang Valley (SGKV) are expected to rise, driven by increased investments that have spurred development across the state.
He explained that in 2024 alone, Selangor attracted around RM70 billion in investments, with a significant portion concentrated in the SGKV region — a conurbation comprising Petaling Jaya, Subang Jaya, Shah Alam, and Klang.
As a result, Ng said the property market continues to grow, reflecting a strong economy, with its positive impact expected to extend nationwide.
“This growth is expected to directly and indirectly boost property values, including homes, bungalows, serviced apartments, factories, and land, as demand continues to rise.
“Both the people and investors have placed their trust in the political stability and administration under the leadership of Dato’ Seri Amirudin Shari. Confidence in Selangor's development agenda has also grown stronger, attracting more investors to the state,” he said.
However, Ng said he understands the concerns of the potential burden of rising property prices on homebuyers, requiring solutions and intervention by the government.
This was why the state administration introduced initiatives such as Rumah Selangorku and Smart Selangor First Home Buyers, to provide affordable housing options priced between RM250,000 and RM280,000, ensuring accessibility for low- and middle-income groups.
“Economic effects often have pros and cons, but when the pros outweigh the cons, we focus on solutions for the challenges. For instance, to help those who struggle to afford homes due to high prices, Selangor has introduced solutions like Rumah Selangorku.
“We also have the Smart Rental scheme, which allows people to rent first and later purchase their homes after five years. For those eligible, this initiative offers a pathway to homeownership.
“This is what the Selangor government is about. We think about how to ease the people’s burdens and ensure there are solutions,” he said.
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Menteri Besar Dato’ Seri Amirudin Shari looks at the Lagenda Ardea Rumah Selangorku scale model after the groundbreaking ceremony in Bernam Jaya, Hulu Selangor, on May 3, 2024. — Picture by REMY ARIFIN/MEDIA SELANGOR[/caption]
Economic opportunities
While concerns are raised about rising property prices across Selangor due to increased interest by property developers and landowners, including beyond the SGKV, Ng said this helps drive development up and create better economic opportunities.
“Beyond the SGKV, places such as Hulu Selangor are also developing fast despite being on the outskirts. There are now established automobile industries in places such as Lembah Beringin and Bukit Beruntung.
“The same goes for Kuala Selangor, where I was informed local plan hearings have received strong interest, with many residents requesting land rezoning from agricultural to industrial or residential use.
“This shows the community in these areas wants to further develop their land,” he said.
According to Knight Frank Malaysia senior executive director of research and consultancy Judy Ong, property prices across the Klang Valley are set to rise by 3 to 4 percent this year.
This is driven by Malaysia's robust economic performance under the Madani Economy framework, consistent gross domestic product growth throughout 2024, low unemployment, and a stable interest rate environment.
She told Media Selangor that while the property segment within the sought-after markets of SGKV and Kuala Lumpur continues to appreciate in prices, property developers are now accelerating their investment in emerging hubs in southern and northern Selangor.
This shift is partly driven by changing lifestyle preferences among young families seeking quieter environments with enhanced security and amenities away from urban centres, she noted.
“This positive outlook is reflected in the improved residential overhang situation as well as the successful launches of new development projects that are strategically aligned with evolving buyer preferences.”
