QUOTE(??!! @ Feb 2 2009, 07:09 PM)
There were press reports of approval of rising the price for low cost houses up to 42k or 45k; esp in big cities
But in practice the prices are controlled by the state govt. I've yet to see any LC houses going for the max price.
Anyone aware of any of these schemes?...if yes, probably under the jurisdiction of DBKL??
Whether developer can actually make money from low cost houses depends very much on land cost.
There are schemes where developer makes a small margin.
Most times, low cost parcels are loss making , where the non low cost houses are priced to absorb the subsidy in the low cost houses.
One more thing is the way low cost housing is treated in the books of developers.
Land cost for LC is usually given a very low weightage. In practice , the acquisation cost is the same, whether it is LC or otherwise.
I've not looked into low cost housing in the big cities so I don't know how they are priced out there.
Yeah, you're right that land cost is a major consideration. In Klang Valley, I suspect that low cost parcels are loss making but subsidised by the non-low cost units (unless the developer got the land cheap/free from the state govt

).
Yup, in practice acquisition cost is the same. Developer purchases a large parcel of land at a given cost. In the subdivision, they are then asked to allocate lots for low cost. Up to this stage, I'd say the price per sq ft is the same. However, when it comes to payment of land premium then the low cost parcels would be charged less.