Setting ceiling prices for affordable homes, even if temporary, will not address the shortage of affordable housing, an economist says.

In the recently tabled 12th Malaysia Plan, it was revealed that the government would implement price caps for affordable homes on the secondary market and limit the number of units a person can buy, to keep these properties accessible to those who need them.

However, CEO of the Center for Market Education Carmelo Ferlito said artificially manipulating the housing market with a price cap will only drive up costs.

“If you put a price ceiling, those who are not in a rush to sell will opt to hold onto their property rather than placing it on the market, if the set price does not meet their expectations,” he told FMT.

“Therefore, you will have fewer houses available, rather than more.

“Furthermore, by creating a negative incentive to sell, and therefore limiting supply, the actual market price will increase rather than fall, and such a spike will be evident if the ceiling (price) is removed.”

In addition, Ferlito said, this could create a market for corruption in the housing market, with sellers incentivised to find buyers willing to circumvent the ceiling price with “off the books” payment.

He called for a more sensible approach to prioritise access to good homes over ownership, as even with price caps, the majority of buyers would still need to take up loans to buy these homes.

With household debt at the end of 2020 reaching 93.3% of the national gross domestic product, the emphasis on ownership should be replaced by offering rental support so those in lower-income groups are able to live in areas that provide better opportunities, he said.

“The government should be promoting social mobility, rather than encouraging people to buy affordable homes in areas that are generally low-income, which would result in the poor remaining poor,” he said.

Source: FreeMalaysiaToday.com

Ferringhi Residence 2 at Batu Ferringhi, Penang

The various steps under the 12th Malaysia Plan (12MP) to reinvigorate the country’s economy post-pandemic will augur well for the housing sector, said Mah Sing Group Bhd founder and group managing director, Tan Sri Leong Hoy Kum.

The 12MP, according to Leong, is a positive step toward boosting economic growth, which will boost buyer confidence and prospects in the housing market.

The government’s resolve to providing quality and affordable housing for Malaysians, particularly the B40 and M40 groups, was outlined by the 12MP.

Some 500,000 affordable homes will be brought to the market during the next five years, according to the development roadmap.

The government will also enhance the financing facilities such as Fund for Affordable Housing, Youth Housing Scheme, and Rent-to-Own Program to ensure that the B40 and M40 groups are not burdened with instalment payments.

According to Leong, these initiatives will provide a favourable climate for people and local companies to lay a solid foundation for the next five years as the country strives for sustained and equitable economic growth,

“The private sector can also support the government’s initiative to provide more affordable housing for the B40 and M40. We can contribute by building inexpensive homes in important places with unique layouts that appeal to the general public,” he said.

Mah Sing has extended its Mah Sing NOW campaign until December 31, 2021, citing high demand for the group’s projects around the country.

For selected units in participating projects, the Mah Sing NOW campaign offers a three-pronged method for home purchasers to enjoy “three doses” of homeownership boosters, namely own now, zero now, and save now.

The participating projects are M Luna (Kepong), M Vertica (Cheras), M Adora (Wangsa Melawati), M Centura (Sentul), M Oscar (Off Kuchai Lama), M Arisa (Sentul), M Aruna (Rawang), Sensory Residence and Cerrado Suites @ Southville City (KL South) in Klang Valley.

In the Southern region, the projects are Meridin Bayvue (Sierra Perdana), Hazel, Orchid and Acacia @ Meridin East (Iskandar Puteri), Meridin Medini Condo (Iskandar Puteri), Meridin Medini SOVO (Iskandar Puteri), Meridin Medini 1 Retail (Iskandar Puteri), iParc (Tanjung Pelepas) and Ixora Park City @ Meridin East (Pasir Gudang).

In Penang, the project is Ferringhi Residence 2 (Batu Ferringhi).

According to Leong, the high immunisation rate and the opening of sales galleries have given the property business a much-needed boost.

He noted foot traffic in all of the group’s sales galleries has increased significantly since the re-opening.

“Buyers are setting appointments to view our sales gallery to find their dream property. The encouraging feedback has boosted our confidence in extending the Mah Sing NOW campaign to ensure that all interested house buyers may take advantage of the benefits we provide,” he said.

The Mah Sing NOW campaign was first rolled out in July this year.

The first dose (own now) allows purchasers to get in quickly, making it easier to get a loan from Maybank Houzkey.

The approach then extends zero payments to buyers, including zero downpayments, zero payment during construction, and zero legal costs on SPA (sale and purchase agreement) and financing in the second dose (zero now).

The entire purchasing process is completed with the third dose (save now), which will see the campaign provide significant savings, including up to 50 per cent off monthly payments, discounts on Memorandums of Transfer, and free furnishing.

“Our economy’s recovery momentum is accelerating as the country rapidly approaches a 90 percent immunisation rate among the adult population. We hope that in the next Budget 2022, the government will give more catalysts for the industry and incentives for home buyers by introducing more property-friendly policies,” said Leong.

Leong also hoped that the country’s borders would open up soon, with appropriate guidelines in place to allow for the resumption of cross-border business operations.

“This would improve our country’s competitiveness in the region and rekindle foreigners’ interest in our assets,” he said.

Source: NST Online

About Signature Two

A 31-storey residential development by Excel Focus Sdn. Bhd. in Perai, Penang. This development is strategically located along Jalan Baru, next to The Signature condominium. It is only within mere minutes’ drive from Penang bridge, featuring 121 condominium units

Find out more about Signature Two

The government has allocated RM2.25 billion to provide housing assistance to the poor under the 12th Malaysia Plan (12MP), said Prime Minister Datuk Seri Ismail Sabri Yaakob.

He said the allocation was to build and repair 85,500 units of houses, namely 75,000 units in rural areas and almost 10,500 units in urban areas, under the Housing Assistance Programme from 2021 to 2025.

“However, it does not include the construction of houses under state governments, corporate sector and Civil Society Organisations (CSOs),” he said when tabling the 12MP with the objective of ‘A Prosperous, Inclusive, Sustainable Malaysia’, in the Dewan Rakyat, today.

Ismail Sabri said the government would also build another 500,000 units of affordable homes to provide the chance for more people from the B40 and M40 groups to own a house.

He said that the government would also improve financing facilities including the Fund for Affordable Homes, Youth Housing Scheme and Rent-to-Own (RTO) programme to ease the burden of these groups in paying their installment.

Source: Bernama

Penang has yet to decide if it will go for a third bridge crossing instead of an undersea tunnel connecting the island and Seberang Perai.

Chief minister Chow Kon Yeow said the state has so far conducted a feasibility study on the construction of an undersea tunnel only.

“The study has been completed and is pending review by federal technical agencies before the state executive council deliberates and makes a final decision.

“Despite having justified the undersea tunnel project that was awarded via open tender in 2012, there is a lot of misinformation by irresponsible quarters.

“However, the state government does not rule out the possibility of building a bridge as a third crossing. We have just not made any decision on this matter,” he said in a statement today.

Recently, The Star reported that the proponents of the project, Consortium Zenith Construction Sdn Bhd (CZC), were considering a third bridge instead of an undersea tunnel.

According to CZC, the bridge option was “cost-effective” and environmentally-friendly compared with an undersea tunnel, with “the ball now in the state government’s court” for a final decision.

The third bridge idea was first mooted at the state assembly in 2016 by former chief minister Lim Guan Eng, who said the state was willing to build a toll-free bridge at a cost of about RM2 billion if the federal government allowed it.

This was because the undersea tunnel would not require any approvals from Putrajaya, while a crossing over the sea would require federal approval.

Then works minister Fadillah Yusof had suspended talks with Penang over the bridge proposal after the state failed to submit relevant documents, which led to a back-and-forth between him and state leaders.

The RM6.3 billion tunnel and roads project – which would connect George Town to Butterworth – was mooted by the Penang government to ease congestion on the first bridge and reduce traffic at other corridors on the island.

Besides the tunnel, three bypass roads were part of the project – Air Itam to the Tun Dr Lim Chong Eu Expressway (5.7km); Tanjung Bungah to Teluk Bahang (10.53km); and Gurney Drive to Tun Dr Lim Chong Eu Expressway (4.1km).

Work on the Air Itam road project has already begun.

Source: FreeMalaysiaToday.com