| Budget Amount *help |
¥2,100,000 (Direct Cost: ¥2,100,000)
Fiscal Year 2000: ¥1,000,000 (Direct Cost: ¥1,000,000)
Fiscal Year 1999: ¥1,100,000 (Direct Cost: ¥1,100,000)
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| Research Abstract |
Malaysia, the Philippines and Indonesia have implemented a low cost housing policy with private sector involvement since the 1980s and the 1990s respectively. Through reviewing their policy experiences up to present, this paper clarifies the policy mechanism and the determinants for success or failure to enforce private housing developers the low cost housing delivery and examines the potentials and limitations of private sector involvement policy into low cost housing supply which can be functioning with cross-subsidy, price control and incentive provision.
In this policy model, developers were required to provide compensation for the low profitability or loss in low cost housing development by appropriating part of the profits in the development of medium to high-cost housing internally (cross-subsidy). This was initially compulsory and the intention of the private sector to invest naturally weakened. Incentives, however, were later provided, namely, public land was put up for sale at preferential prices (Malaysia), development procedures were expedited, regulations were eased, etc (Malaysia and Philippines). In case of Malaysia, because medium to high-cost housing markets experienced boom conditions amid economic growth after 1987, the funneling to supply low-cost housing produced considerable results. In Malaysia, a policy enforcement system (ensuring low cost housing supply at the issue of development and sales permission and controlling low-cost housing delivery by governments) was established with strong governmental guidance, and the program produced practical results. In the case of the Philippines and Indonesia, however, housing was supplied in surrounding areas or outside a designated region and housing was purchased for speculative purposes ; under the circumstances, the policies have not always functioned as expected.
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