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Kota Kinabalu: The Sabah Government is considering a shift towards high-rise affordable housing projects as a long-term solution to escalating property prices and limited land availability, according to new Sabah Housing and Town Development Board (LPPB) Chairman, Datuk Awang Ahmad Sah.

He said the current model of building individual landed houses under government housing assistance schemes is no longer sustainable, particularly in urban areas where land is increasingly scarce and demand continues to rise.

“House prices in Sabah, especially in urban centres, are now beyond the reach of many families earning between RM3,000 and RM5,000 a month. Even terrace houses are selling between RM400,000 and RM600,000, which is simply unaffordable for most,” he said.

Awang Ahmad stressed that while programmes such as the Sabah Maju Jaya (SMJ) housing assistance, which provides RM80,000 to RM85,000 per eligible applicant, have helped many low-income families, the approach must evolve to remain effective.

“If we continue building detached houses, we can only construct about eight to 10 units per acre. With population growth increasing rapidly, this is not viable in the long term.”

He cited areas such as Tanjung Aru, where land constraints have significantly limited the number of SMJ houses that can be built annually despite high demand.

In some cases, SMJ allocations had to be relocated to other areas such as Petagas, which itself is also facing growing development pressure.

To address this, Awang Ahmad said LPPB is proposing medium-to high-rise residential developments of 10 to 12 storeys for SMJ and other affordable housing programmes across Sabah.

“High-rise development is a more strategic and sustainable solution. It allows us to maximise land use while ensuring more eligible families own homes,” he said.

Under the proposed model, the government’s SMJ allocation would be channelled directly to developers. For example, for a low-cost unit priced at RM150,000, the RM80,000 government assistance would significantly reduce the buyer’s financial burden.

“The buyer would only need to finance the remaining RM70,000. With manageable monthly repayments over 15 years, home ownership becomes realistic for many,” he explained.

Awang Ahmad said the proposal will be presented to Chief Minister Datuk Seri Hajiji Noor and tabled in the State Legislative Assembly for discussion.

“We are looking at implementing a pilot project, possibly this year or early next year, to test the model before expanding it statewide,” he said, adding that the initiative would also address issues involving existing government housing units that are currently unoccupied or facing structural problems.

He reaffirmed LPPB’s commitment to ensuring affordable housing remains a priority under the Sabah Maju Jaya development agenda.

“Our focus is clear — to ensure that every eligible Sabahan, especially those in the B40 group, has a fair opportunity to own a safe and affordable home,” he said.