The implementation of a vacancy tax could be a key factor in addressing the issue of vacant and unsold housing units across Malaysia.

Khazanah Research Institute’s Theebalakshmi Kunasekaran said this tax is imposed on housing units that remain unoccupied or unused for a certain time period.

It is usually calculated as a percentage of the gross selling price of these units, which means the higher priced housing units will have a greater corresponding tax amount.

She noted in a report the aim of this tax is to encourage developers to be more cautious when planning housing projects.

“They would be prompted to undertake a comprehensive feasibility study to analyse the local market demand and provide housing that caters to the diverse needs of different population segments.

“This can prevent oversupplying products that can contribute to the property glut,” she said.

According to Theebalakshmi, this tax will also discourage speculative activities by people who hold units to make quick profits.

Meanwhile, Theebalakhsmi said vacant units not only are left idle, but also impact resources and neighbourhoods in terms of development. She said when there are overhang units, there is less utilisation of public transport services which will place a strain on public resources.

“Additionally, the presence of unoccupied units can also lead to disinvestment in townships by discouraging property developers and businesses from investing in the neighbourhoods,” she said.

Theebalakhsmi concluded the vacancy tax will push developers and homeowners to start selling or renting their empty units to avoid paying the tax.

“Consequently, this will provide home buyers with access to affordable housing options as developers lower their price through ‘fire sales’ to clear the glut.”

Source: TheStar.com.my

Chinatown @ Raja Uda, is themed uniquely and integrated FREEHOLD commercial development where everything converges in one location to satisfy businesses, offices, entertainment, food & beverages and local amenities need. It is now set to change the Raja Uda townscape through a well-planned collection of the Chinatown themed commercial spaces within a thriving hotspot of commercial activity. This well-planned commercial development is proudly brought to you by Jayamas Property Group.

This development offers 30 units of freehold extendable 4-storey shop offices, featuring a build-up from 3,337 sq.ft – 7,337 sq.ft. Indicative selling price starts from RM1,800,000. It is scheduled for completion by 1st Quarter of 2026.

Project Name: Chinatown @ Raja Uda
Location: Raja Uda, Butterworth
Property Type: 4-storey shop office (Extendable)
Built-up Size: 3,337 sq.ft. – 7,337 sq.ft.
Total Unit: 30 units
Indicative Price: RM1,800,000 onwards
Developer: Jayamas RU Sdn Bhd  (Jayamas Property)

DISCLAIMER: This article is solely based on research done using publicly available data. This is not an advertisement. Any claim, statistic, quote or other representation about a project or service should be verified with the developer, provider or party in question.

Ten new transportation projects have been included in the 12th Malaysia Plan (12MP) including the Penang light rail transit (LRT) project.

During the presentation of the mid-term review of the 12MP, Prime Minister Datuk Seri Anwar Ibrahim said the government emphasised the development of sustainable and resilient transport and logistics infrastructure.

“A major shift in strengthening the public transport network will provide better access and connectivity.

“More people will enjoy public transport services that are increasingly efficient, reliable, affordable and safe,” he said in Parliament yesterday.

The other nine new transportation projects are the expansion of Bus Rapid Transit (BRT) and intra-city bus services including in Johor Bahru and the Klang Valley; upgrading of the Senai-Desaru Highway; widening of the North-South Highway (from Yong Peng to Senai Utara) in phases; construction of Sarawak-Sabah Link Road II; construction of Sabah Pan Borneo Highway Phase 1B; Penang International Airport expansion; redevelopment of Sultan Abdul Aziz Shah Airport, Subang; upgrading the East-West Highway from Gerik, Perak to Jeli, Kelantan; and upgrading the road from Tanah Rata to Kea Farm, Cameron Highlands.

“The development of a new port on Carey Island is also expected to strengthen Port Klang as a regional transshipment hub.

“The government will also improve transport infrastructure maintenance works to extend the lifespan of roads, rail assets and air navigation equipment,” he added.

Source: NST Online

Housing development account (HDA) weaknesses in monitoring and management procedures are among factors identified as contributing to problematic housing projects.

Deputy Local Government Development Minister Akmal Nasrullah Mohd Nasir said HDAs are under the Housing Development (Control and Licensing) Act (Act 118), where the law requires licensed housing developers to open and maintain HDAs with banks for each project undertaken.

“An HDA is [supposed to be] specific to one project, but what happened was that one HDA was used for several projects, and even the financial institution’s bridging loan with the developer was not included in the HDA. HDAs were clearly stipulated in Act 118, but the implementation was vague,” he said.

An HDA is an account for deposit savings for developers to obtain development licences and financial loans for construction, and to regulate projects from being abandoned.

Speaking at a press conference regarding the development of the status of sick and abandoned housing projects here on Friday, Akmal Nasrullah said that the Ministry of Local Government Development wants HDA monitoring to be improved and coordinated between the ministry and the banks.

Akmal Nasrullah said the task force for sick and abandoned private housing projects had forwarded improvement recommendations to financial and banking institutions, so that the intent of Act 118 is achieved, with a solution to ensure that HDA management is organised and regulated.

Apart from that, he said that several other weaknesses were also identified, including developers’ project management and financial capabilities, on-site management involving main contractors, and contract disputes between developers and landowners.

He added that until July 31, the task force had detected and monitored a total of 118 delayed projects (13,039 housing units), 490 sick projects (79,278 units), and 114 abandoned projects (24,262 units).

Akmal Nasrullah said 222 private housing projects (24,422 housing units) had been successfully restored, to the point of receiving a certificate of completion and compliance, or changing to smooth status.

“The gross development value (GDV) of the successfully restored projects is as much as RM20.61 billion. Of that amount, a total of 44 projects, or 3,496 units, were successfully restored for the period of July 1 to 31, with a GDV of RM3.14 billion,” he said.

Source: TheEdgeMalaysia.com

About Savana @ Utropolis

This is the fourth phase of Paramount Property’s Utropolis development at Batu Kawan. Located along Jalan Cassia Barat 2, adjacent to Sensasi and Sinaran Residences. It is less than 5 minutes’ walking distance to Design Village outlet mall and UOW MALAYSIA KDU Penang University College, with easy access to Penang Second Bridge and North-South Expressway. This development features 522 residential units with 8 levels of car parking podium.

Find out more about Utropolis @ Batu Kawan:

• Phase 1 – Sensasi Commercial & Residential Suites (Completed)
• Phase 2 – Suasana Residential Suites (Completed)
• Phase 3 – Sinaran Avenue & Sinaran Residences (On-going)
• Phase 4 – Savana (On-going)

(Photo taken Aug 2023)