The government has no plans to integrate the Malaysia My Second Home (MM2H) programme with the Home Ownership Campaign (HOC), as the two schemes have different objectives, said the Housing and Local Government (KPKT) Minister Zuraida Kamaruddin.

“Both programmes have different objectives and target segments: One is targeting Malaysians with the objective to encourage home-ownership, while the other is aimed at attracting foreign investors,” Zuraida stressed during Parliament session today.

The minister said in a written reply to Ketereh lawmaker Tan Sri Annuar Musa’s queries on the government’s plans of selling luxury home units (homes priced above RM1 million) to foreigners and its implication on the local property market.

Zuraida noted that HOC is a programme that caters specifically to Malaysians only to enable them to own a home with incentives provided by the government and also discounts from the developers.

MM2H, on the other hand, is a governmental initiative to attract and provide an opportunity for high-income foreigners (subjected to fulfilment of certain requirements) to reside in Malaysia and contribute to the economy, as well via a number of sub-sectors like investments, property and education, among others.

Successful MM2H applicants will be given a social visit pass with a multiple-entry visa for a period of 10 years, which can be renewed.

Reduce unsold properties to boost economic growth

Based on data from the National Property Information Centre (Napic) for 2Q2019, there are 4,213 unsold home units priced at RM1 million and above amounting to some RM8.3 billion.

“If these properties could be sold to foreigners, it could help to reduce the oversupply of luxury properties, hence, encourage economic growth as a whole,” she added.

For those who worry about the lowered price threshold for foreign property buyers affecting local home ownership, Zuraida said that the state governments have their own guidelines for foreign homeownership to prevent developers from building luxury homes solely for foreigners and property price speculation.

Additionally, the number of homes purchased by foreigners from January to June this year stood at just 0.4% or 398 units compared with 99,524 units for Malaysians (99.6%), according to Napic.

“This shows that the property market for foreigners is still under control,” added Zuraida.

Based on data from the Ministry of Tourism, Arts and Culture (MOTAC), the number of property transactions from 2007 to 2018 by MM2H holders recorded some 5,108 units in which a majority (2,097 units) are from China.

“Therefore, the government via Budget 2020 decided to lower the price threshold for foreigners to purchase high-rise residential properties in urban areas to RM600,000, from RM1 million, for one year without denying the rights of eligible locals to purchase similar properties,” explained Zuraida.

In encouraging local homeownership, the minister noted that the government has introduced several initiatives to help homebuyers such as the HOC, flexi-loan schemes, Cagamas SRP Bhd youth scheme guarantees and more.

According to her, some 21,000 units worth RM13.44 billion have been sold under the HOC since January 2019 – substantially more than the initial target of RM3 billion.

“Thus, the HOC was extended to December 2019 to allow more Malaysians to own a home at a discounted price on top of stamp duty exemptions provided by the government,” added Zuraida.

Meanwhile, Zuraida noted that the FundMyHome crowdfunding platform, which was developed by EdgeProp Sdn Bhd, is also another alternative way to facilitate homeownership.

Source: EdgeProp.my

Sinaran Residences @ Utropolis is the residential component in the third phase of Utropolis development by Paramount Property at Batu Kawan, Penang.  It is strategically located along Bandar Cassia Expressway, with walking access to Design Village outlet mall and UOW MALAYSIA KDU Penang University College. Driving to Penang International Airport will only take approximately 30 minutes via Second Penang Bridge.

This development will feature two blocks of 36 & 37-storey serviced apartments, offering a total of 964 residential units with unit size ranging between 667 sq.ft. – 1,518 sq.ft. Larger units will come with a dual-key and duplex concept.

Project Name : Sinaran Residences @ Utropolis
Location : Batu Kawan, Penang
Property Type : Serviced Apartment
Built-up Area : 667 sq.ft. – 1,044 sq.ft.
Total Units: 964
Indicative Price: RM338,000 onwards
Developer : Paramount Property

Location Map:

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SITE PROGRESS: Sinaran Residences (July 2021)

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About Imperial Grande

A mixed development by Modular Platinum Sdn. Bhd. (Ideal Property Group) in Sungai Ara, Penang. It is located along Jalan Fettes, surrounded by Iconic Skies, Gardens Ville and Imperial Residence. This development will offer a mix of landed and high-rise properties, with 2 level of shop offices located below the residential tower.

Find out more about Imperial Grande

MAPEX has been one of the feasible platforms in gathering interest for property purchasing as the previous venture made a grossing sales of RM300 million, with more than 200 applicants in salvaging government-linked homes. As the Co-Organizer of MAPEX, Property Queen’s dedication and commitment ensuring home ownership among Malaysians will receive positive participation through the consistent support that is invested through the making of this event. The participation will justify Property Queen’s practice in providing comprehensive service to the consumers and facilitate them in searching for the next future dream home.

This November, Penang will once again be graced in red when MAPEX will be held in 2 locations for 2 consecutive weekends.

About six million Malaysians who live in strata properties will “benefit” from a Court of Appeal ruling that all owners in mixed development strata properties pay maintenance rates based on a fixed formula.

“It is not only high-rise buildings but also gated and guarded communities that have strata titles,” said Strata Owners Association Malaysia (SOAM) pro-tem committee chairman Datuk Theng Book.

The court decision, he added, was good and fair to everybody.

Explaining the impact of the ruling, he said: “Take a scenario where a mixed development property has a residential block comprising 100,000 share units and a commercial block comprising 100,000 share units.

“The residential block is made up of 300 apartments or residents, but the commercial block is owned by the developer that can be represented by one or two persons.

“Even if half of the residents’ group turned up at an annual general meeting (AGM) called by the Joint Management Body (JMB) committee, they are still in the minority compared to the developer’s side which makes up the majority.

“As the majority shareholder, those from the commercial block can vote on decisions that impact everyone in the mixed development property.

“They could decide that the residential owners pay RM5 per share unit (psu) for the maintenance fee, while the commercial owners pay a lower rate of RM1 psu,” Theng said.

On Oct 4, the Court of Appeal ruled that JMBs of high-rise buildings were not allowed to charge different rates on owners in mixed development projects.

It overturned a High Court decision that the JMBs had the right to fix different rates of service or maintenance charges for different parcels in such projects.

With the Court of Appeal’s ruling, Theng said a flat maintenance rate for all could be fixed at the AGM to ensure fairness for all parties.

“The decision has a great impact on many people, as about six to seven million of the Malaysian population stay in strata properties,” he added.

It would also impact gated and guarded communities that have strata titles “because residents living there share common properties and services such as roads, drainage, sewerage system, security, rubbish collection and parking”.

Theng noted that the Housing and Local Government Ministry had a task force looking into amending the Strata Management Act.

“There are many loopholes in the Act that the government needs to amend to better represent the rights of strata owners in Malaysia.

“These include the maintenance rate, tender system and abuse of power by majority unit shareholders,” he said.

SOAM pro-tem committee secretary Kelvin Chong said there had been complaints about unfair payment rates and unfair voting rights based on share units.

Prior to the Court of Appeal’s decision, he said a common scenario was such that residential unit holders would be subsidising the maintenance charges for commercial unit holders in a mixed development property.

“For example, a JMB for a mixed development property in Kuala Lumpur decided that the retail unit owner should pay RM0.20 psu, but the residential unit owner pays RM2.70 psu.

“Is it fair for both parties to enjoy the same voting rights if the bigger shareholder pays less?” he asked.

Under the First Schedule (Section 8) of the Strata Management Act, he said there was a fixed formula to calculate the allocated share units of parcels.

“The formula includes the weightage factor for the types of parcel such as residential, office, retail or hotel, as well as whether the property has air-conditioning in common areas and lift facilities,” Chong added.

He said SOAM represented strata property owners, most of whom were individuals, although it also welcomed developers.

The national body, which has submitted its application to be registered with the Registrar of Societies, covers Johor, Kuala Lumpur, Melaka, Negri Sembilan, Penang, Perak and Selangor.

Source: TheStar.com.my