Improvements to the Housing Credit Guarantee Scheme (HCGS) under the Budget 2023 through the increase of financing funds and expanding the qualification of applicants to fixed income groups can help reduce the number of unsold low- and medium-cost houses.

Economic expert Jain Yassin said the scheme, which offers financing up to RM400,000, will bring cheer to fixed and variable income groups who wish to own their first home before the age of 35.

“With the amount of financing, buyers can get a comfortable home even if it is further away from the city centre and it is something healthy for the industry as many homes within the range of financing can be sold,” he told Bernama as a comment on Prime Minister Datuk Seri Anwar Ibrahim’s announcement in Dewan Negara on Wednesday that the scheme would expand to include both income categories and benefit the B40 and M40 groups.

The government had announced during the Budget 2023 on February 24 that the scheme would be improved by raising financing funds from RM3 billion to RM5 billion to help first-time housebyers, especially those with variable income.

According to a report issued by the National Property Information centre, there are 10,901 properties under RM400,000 that have been built but are unsold at the fourth quarter of last year.

Jain also said that the government needs to have a risk assessment on the possible consequences of its implementation as the country should learn from the property overhang that occurred in the United States in 2008.

The Universiti Teknologi Mara (UiTM) Sabah Management and Business Faculty senior lecturer added that the US at the time loosened housing loan conditions but many foreclosures occurred as buyers were unable to fulfil their repayments, forcing the government to use additional funds to solve resulting problems.

“Even though generally the scheme is different as there is a company appointed to manage the financing process with tighter vetting, while in the US, the banks were giving out loans directly, the implications might be similar,” he said.

Meanwhile, private sector employee Zaharah Adnan, 35, who is on a fixed income, said the initiative was good for him as he had long dreamt of owning a home in the capital but did not have enough financially for a deposit.

“Not everyone has a high salary while starting off, and due to many commitments, I find it hard to save. With savings of only RM100 a month, it’s quite hard for me to realise my dreams of owning a home because I can’t save enough for the deposit,” he said.

Based on information on the HCGS website, those who qualify for financing need only pay a mandatory deposit equivalent to three monthly instalments, way lower than the 10 per cent of purchase price set previously.

For e-hailing driver Mohammed Khairul Ali, 33, the main obstacle for people like him from owning a home would be to obtain a bank loan as he would not qualify thanks to the lack of payslips and other documents.

“Don’t even talk about housing loans, even vehicle loans and personal loans are hard. So if the scheme will help solve this issue, then it will be a great help for people like me,” he added.

Source: Bernama

In conjunction with the upcoming Hari Raya celebration, Mah Sing Group is offering a festive rebate of RM2,999 for homebuyers! Plus, with the Mah Sing Secured package, purchasing a home has never been easier!

Features:

• Low density on a total land area of 9.95 acres
• Over 17 complete facilities, including a tennis court, jacuzzi, and swimming pool and more
• Spacious built-up area of ±1,500sqft
• 2-3 parking spaces
• 3-Tier Security System + Automatic Garbage Collection System

Latest promotions:

💚 Attractive packages and incentives*
✨ Save up to RM150K*
💚 Free legal fees and stamp duty*
✨ Fixed interest rates starting from 3.3%*
💚 Additional rebate of RM2,999*

Don’t miss this opportunity. Contact Mah Sing now and seize the perfect time to move into your dream home!

You may register your interest below or WhatsApp: https://bit.ly/3DFbYK7

T&Cs apply.

Sunway Dora is strategically located in the heart of Bayan Baru, offering easy accessibility and connectivity. The development is surrounded by various amenities, including the Olive Tree Hotel, SPICE Convention Centre, and eateries such as Giant Hypermarket, Pantai Hospital, and Sunshine Square. It is only a short 5-minute drive from Bayan Baru roundabout, making it a convenient location for both residents and business activities.

The development comprises 156 residential units and 22 ground-floor shop lots with flexible layouts that cater to multigenerational families. Sunway Dora provides ample parking spaces, with exclusive allotments for residents and shop owners on designated floors and additional parking spaces on levels 1 to 3 for visitors and customers.

With only 156 residential units, Sunway Dora offers residents more privacy, more open spaces, and fewer crowds and vehicles, making it an ideal living environment.

The project has achieved an 89% take-up rate for the non-bumi condominiums. The commercial shop units were launched earlier and have achieved a 100% take-up rate for the non-bumi units.

Follow this link to find out more about Sunway Dora.

The Penang state government has put a request for a proposal (RFP) exercise for its Bayan Lepas Light Rail Transit (BLLRT) project on hold pending discussions with Putrajaya on funding for the project.

State Infrastructure and Transport Committee chairman Zairil Khir Johari said the state has completed the pre-qualification registration exercise where companies were already shortlisted.

“We haven’t proceeded with the RFP as now the federal government has changed and we are currently in discussions with the federal government to get a new way forward for the project,” he said when contacted by Malay Mail.

He said the state is hoping to get funding from the federal government for the RM10 billion project.

He said all major urban rail projects are funded by the federal government so this project should also be federally funded.

The state held the pre-qualification registration exercise for the BLLRT project between July 25 and August 19 last year.

The state was supposed to call for an RFP early this year where only the companies that were shortlisted in the pre-qualification exercise can participate.

Zairil said if they were to call for an RFP and appoint a contractor now, the contractor will have a contractual expectation to implement the project and be paid for it.

“Plans change when circumstances change. So now with a friendly federal government, we hope to get some assistance,” he said.

The BLLRT is one of the major components of the state’s mega infrastructure project, Penang Transport Master Plan (PTMP).

The BLLRT had obtained conditional approval with 30 prerequisites from the Ministry of Transport back in 2019.

The state had applied for RM10 billion funding for its RM46 billion PTMP project in 2019 under the then Pakatan Harapan (PH) federal government.

The then PH government rejected the funding request but offered a government guarantee for a US$500 million (RM2 billion) loan application for Penang.

However, the government guarantee was cancelled in December 2020 after a change in the federal government.

The state had then looked at other models of financing for the PTMP and its components.

The state government applied for a final rail scheme approval for the BLLRT project on May 21, 2020.

According to a parliamentary reply by the Transport Ministry to an oral question by Bagan MP Lim Guan Eng, the final railway scheme approval could not be issued as it is pending approval of the Environmental Impact Assessment (EIA) for the Penang South Reclamation (PSR) project.

This is because a portion of the LRT line is on one of the reclaimed islands in the PSR.

The ministry said the final rail scheme approval will only be reconsidered after all approvals for the BLLRT such as the EIA for the PSR is approved.

“The construction of the BLLRT project can only start after the final rail scheme approval is obtained,” it said.

The PSR was first introduced back in 2015 as the funding module of the PTMP after SRS Consortium was appointed as the project delivery partner (PDP) for the project on August 14, 2015.

The PTMP is a comprehensive transport strategy for an integrated and modern transport framework that included public, private, land and sea transportation systems.

Two of the main components of the PTMP are the Pan Island Link 1 (PIL1) and the BLLRT.

PIL1 is a 19.5km highway that is estimated to cost RM7.5 billion while the BLLRT stretches 29.5km with 27 stations and is now estimated to cost about RM10 billion.

Source: MalayMail.com

Artist impression

Eastern & Oriental Bhd (E&O) has completed the reclamation of Andaman Phase 1 and plans to begin the development of the 253-acre land over the next 15 years with an estimated gross development value (GDV) of RM17 billion.

The first property, The Meg, has been on the market since January 2022 and has a 100 per cent sales rate as of January 2023.

The Meg comprises two residential apartment blocks with about 1,020 units situated in the prime Tanjung Tokong area near Gurney Drive.

According to E&O, the reclamation for Andaman Phase 2 will take another three years to finish and will provide a future land bank for development.

“The group believes that Andaman Island will play a significant role in driving its growth trajectory in Penang in the coming years,” E&O said.

Both Andaman Phase 1 and Phase 2 (also known as STP2) are part of Penang’s broader multi-billion-ringgit Seri Tanjung Pinang (STP) development.

STP is a seafront development masterplan on the northeast coast of Penang island. The 240-acre first phase, Seri Tanjung Pinang Phase 1 (STP1), is fully reclaimed and close to completion.

Tanjung Pinang Development Sdn Bhd (TPD), in which E&O-PDC Holdings Sdn Bhd owns 30 per cent, holds the concession rights for STP reclamation and development.

Permaijana Ribu (M) Sdn Bhd, an E&O wholly-owned indirect subsidiary, owns the remaining 70 per cent ownership stake in E&O-PDC.

E&O controls E&O-PDC and proposes to purchase the remaining 40 per cent equity interest in the company from Penang Development Corporation (PDC) for RM46.95 million through its indirect wholly-owned subsidiary, Kamunting Management Services Sdn Bhd.

“The acquisition of 40 per cent shareholding in E&O-PDC from PDC will enable E&O to own 100 per cent in TPD where the main development activities for the group will be concentrated on over the next 30 years,” E&O said in a stock exchange filing yesterday.

E&O said that the RM46.95 million purchase price was based on a willing-buyer, willing-seller premise and will be funded through a combination of internally generated funds, shareholder advances, and external borrowings.

The transaction is anticipated to close in December 2023.

Source: NST Online