News: Push for 'affordable' instead of low-cost homes: REHDA
More affordable homes, instead of low- and medium-cost homes, will be built by developers to help meet consumers' demand.
The Real Estate and Housing Developers Association (REHDA) said in a memorandum to the Finance Ministry that in line with the increase in household income, they would rather develop affordable homes instead of low-cost homes as consumers did not want them.
"Unoccupied and excess low-cost units are a waste of resources. They are cross-subsidised by both developers, through lower profit, and lower tax collected by the Government and buyers of non-low cost units, in additional tax," said Datuk Seri Michael Yam, President of REHDA.
REHDA also proposed a lower stamp duty to provide buyers with cheaper units while paying less.
"The ceiling for higher priced units should be lifted as inflation and higher costs have increased the prices of even affordable homes," said Yam.
He noted that REHDA also recommended an auto release mechanism for Bumiputra units.
"Penalties should not be imposed for such releases as it is caused by low demand," he said.
Meanwhile, Chang Kim, Secretary-General of National Housebuyers Association (HBA) said that a memorandum for the upcoming budget has not been submitted by the organisation.
"Although Sharia-compliant housing using the BTS system was announced in Budget 2012, it is yet to be implemented," he said.
REHDA reportedly asked for HBA's recommendations to reduce home prices. HBA then responded with 10 suggestions citing affordable housing projects rather than high-end ones to be the priority.
For the latest property news, trends, resources and expert opinions, visit our Property News section. Home buyers, sellers or property renters looking for Malaysian Properties, may like to visit http://www.propertyguru.com.my today.