The government may extend the Home Ownership Campaign (HOC) benefits to the secondary market, the National Property Information Centre (Napic) said.

It may also freeze the development of stratified buildings to resolve the overhang in the various segments of the property market.

The HOC benefits include substantial savings in stamp duty and tax exemption in housing loans.

Deputy director of Inventory at the National Property Information Centre (Napic) Ari Adam said extending the HOC to the secondary market will create a level playing field in the residential segment.

The HOC benefits are currently limited to developers’ units but the extension to the secondary market will see house owners benefit when they sell their houses.

The HOC is expected to end on Dec 31, 2021.

Ari said a freeze on stratified buildings may resolve the overhang in the residential and serviced apartment segment, and in the purpose-built office space and shopping malls while extending the HOC to the secondary market will help to spur residential sales.

He was speaking at the association of valuers, property managers, estate agents and property consultants in the private sector Malaysia (PEPS) 14th Malaysian Property Summit 2021.

Ari hinted that the Budget 2022 may also reveal some news with regards the extension and the possible freeze on stratified buildings.

He said the government and stakeholders need to “think out of the box” as the government is expecting a surge in stratified units – mainly serviced apartment units – as developers try to maximise profits when the economy takes ginger steps towards reopening.

Ari, who was in Johor before the pandemic to see the situation there, said the overall overhang situation in the country “is quite alarming and we have to think out of the box” about how to resolve it.

The unsold completed units – overhang, in property parlance – in residential, serviced apartments and small office home offices (SoHos) totalled 57,154 units, with a ringgit value of RM41.54bil at the first half of 2021.

Ari said the issue of overhang has been there since before the Covid-19 pandemic but the pandemic “only amplified the scenario.”

“As I usually say, data speaks for itself. The question is: What do we do with overhang? Do we let prices come down?

“Perhaps if we had (made it mandatory) for developers (to have independent feasibility and market studies), there may be no overhang. Perhaps if developers consider what the people want or can afford,” Ari asked.

As for office and mall space, Ari said Malaysia has never seen such low occupancy rates for both which is about 70% as today.

“This is the lowest ever. I don’t know if it will get worse or better. We have to find ways to occupy all the space we have. There were ideas about making them into small office centres, data centres or starter homes,” Ari said.

Source: FreeMalaysiaToday.com

The government, through the Housing and Local Government Ministry, has been doing an admirable job of trying to make the housing delivery system as smooth as possible to ensure that the people would have access to affordable homes.

However, this has not been an easy task to undertake as housing falls under the jurisdiction of state governments – each one with its own set of guidelines and requirements that may sometimes go beyond those provided by the federal government.

Such requirements have had an impact on the cost of development, and ultimately, the affordability of houses, said Real Estate and Housing Developers’ Association (Rehda).

Given the current scenario, government assistance is crucial to reduce the cost of doing business, which would subsequently help to give a much-needed boost to the affordable housing segment.

For development costs to remain sustainable, the government needs to take steps such as not imposing any more new conditions or new charges or raising contribution charges by utility companies and local authorities, it said.

“Besides, the federal government should also advocate for standardised guidelines and rules to be adopted nationwide, especially those which could benefit all parties,” the leading representative body for private property developers told Bernama in its wishlist for Budget 2022.

Rehda also hoped that the government would extend the ongoing measures taken to help the property industry, and introduce new ones to boost its recovery in light of the ongoing pandemic and its prolonged impact on the industry.

“The most urgent one needed by the industry currently is the amendment of the Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (COVID-19) Act 2020 with regards to contractual obligations to account for the Movement Control Order (MCO) 2, MCO 3, Enhanced MCO, Full MCO and National Recovery Plan Phases One and Two.

“Amendment of the Act is important to protect the interests of the affected parties for their inability to meet the contractual obligations due to reasons which are beyond their control,” it said.

Rehda also wished for the government to take steps to ensure the stabilisation of building material prices like steel bars, which has been fluctuating in recent years.

“We also hope the government would review or abolish some measures introduced when the property market was at its peak, as they might not be relevant for now.

“Additionally, the government could consider the downward revision of the Real Property Gains Tax (RPGT), with zero imposition for properties disposed of from the sixth year onwards, as well as the total removal of the Loan-To-Value (LTV) ratio for the purchase of third property onwards,” it said.

Additionally, it also hoped that the long outstanding issue of foreign workers in the construction industry would be resolved.

Meanwhile, National Housebuyers Association (HBA) honorary secretary-general Datuk Chang Kim Loong wished that the government would reduce the income tax for individuals affected by Covid-19 and ensure that deserving individuals are given access to financing, especially for first-time house buyers.

“We also hope that developers building affordable homes costing RM300,000 and below would be given incentives.

“Besides, we hope the government would repeal the RPGT which is currently at five per cent for disposal of property held for more than five years, and increase RPGT rates for disposal of third and subsequent property,” said Chang

Source: NST Online

Taman Mengkuang Jaya 3, the forth phase of Taman Mengkuang Jaya master planned residential development by Metrio Group at Kubang Semang in Bukit Mertajam. Located adjacent to the first phase of Taman Mengkuang Jaya, accessible via Jalan Kuala Mengkuang. It is less than 2km away from BKE – Penanti exit, approximately 20 minutes drive to Kulim Hi-tech park and Penang Bridge.

This development will feature a total of 106 landed residential units, with built-up sizes ranges from 1,968sq.ft. onwards:

• 2-storey terrace (83 units)
• 3-storey terrace (14 units)
• 2-storey semi-detached (8 units)
• 2-storey bungalow (1 unit)

Project Name: Taman Mengkuang Jaya 3
Location : Kubang Semang, Bukit Mertajam
Property Type : Residential development
Total Units: 106
Built-up Area: 1,968sq.ft. (2-storey terrace), 2,292sq.ft. (3-storey terrace)
Land Size: 1,391sq.ft. (2-storey terrace), 2,131sq.ft. (3-storey terrace)
Indicative Price: RM478,000 onwards
Developer: Tuah Eramas Sdn. Bhd. (Metrio Group)

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.

About TreeO

Affordable housing development by Hunza’s wholly-owned unit, Diamaward (M) Sdn Bhd, at Sungai Ara. It is located next to Taman Sungai Ara, about 1.5km away from SJK(C) Chong Cheng. This development comprises three 49-storey towers offering a total 1,240 affordable units.

Find out more about TreeO

The Penang government will not be raising the prices of low-cost (LC) and low medium-cost (LMC) units in the state.

State Local Government, Housing, Town and Country Planning Committee chairman Jagdeep Singh Deo said the LC unit in Penang is priced at RM42,000 while LMC unit is priced at RM72,500.

“Some states have raised the prices of LC and LMC units. In some states, the price of an LC unit has been increased from RM42,000 to RM60,000 while the price of an LMC unit has been increased to RM100,000.

“Even before the pandemic, the Penang government had mentioned that the state will not falter because these are affordable homes for the people.

“How can we increase the prices? I want the Housing and Local Government Ministry to look into the matter,” Jagdeep told a press conference at Block A, Greenlane Heights in Jalan Besi yesterday.

Jagdeep said the Penang government would not be increasing the cost of the LC and LMC in Penang.

“We will maintain the prices. It is our social responsibility.

“We have a target of supplying 220,000 units of affordable homes (of various prices) under the Penang2030 vision – from RM42,000 to RM300,000 per unit (on Penang island), and from RM42,000 to RM250,000 per unit (on the mainland).

“We have supplied almost 130,000 units of affordable homes now. I am confident that we will be able to supply 220,000 units of affordable homes, or even more, by 2030,” he added.

Also present were Seri Delima assemblyman Syerleena Abdul Rashid and Bukit Gelugor MP Ramkarpal Singh.

Jagdeep said that the state was also assisting several housing projects in maintaining their housing schemes.

“These housing schemes have to be eligible for the maintenance funds that are available in Penang.

“The state has various maintenance funds to help the people maintain their schemes. They are the Public Housing Maintenance Fund, the housing maintenance funds under the Penang Island City Council and the Seberang Perai City Council, and Penang Maximum 80% Housing Maintenance Fund (TPM80PP).

“Those LC, LMC and private housing schemes of up to RM150,000 (at the time of principal purchase) can apply for the TPM80PP, and are eligible to be considered by the state government,” Jagdeep said.

Jagdeep said the state has approved the TPM80PP application by Block A, Greenlane Heights.

“The apartment is 24 years old. It has constantly faced electrical system problems.

“The most noticeable problems are at the corridors and the riser room.

“The total cost of the maintenance work is RM221,710 and the state has agreed to bear 80% of the total cost.

“We are happy that the management corporation of the housing scheme is willing to bear the remaining 20%,” Jagdeep said.

Source: Buletin Mutiara