News: Government keeping an eye on home prices in Malaysia
The Malaysian government is keeping a close eye on the movement of house prices and is willing to implement other measures to ensure that houses remain affordable for the people.
Datuk Lajim Ukin, Deputy Housing and Local Government Minister, said that several methods were implemented such as the 70 percent reduction of the ‘Loan to Value' (LTV) on housing loans during the purchase of a third and subsequent houses.
He added that the real property gains tax has been reintroduced since 1 January 2010 to cutback speculation that prompted the hike in house prices.
"Currently, the government does not control house prices as it is determined by market forces and free economic practice to encourage the growth of the housing industry," said Lajim.
He added that the government targets to build 78,000 units of low cost houses for the low income group under the 10th Malaysia Plan.
Additionally, the 1Malaysia housing programme was introduced to help medium income groups purchase houses between RM150,000 and RM300,000.
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