Penang Pakatan Harapan and Barisan Nasional (BN) submitted today a historic joint motion to the prime minister to address high loan rejection rates affecting home buyers in the state.

State executive councillor Jagdeep Singh Deo said state Opposition Leader Datuk Jahara Hamid had signed the joint motion together with Penang Chief Minister Lim Guan Eng.

“I believe this is a historic moment to have a joint motion signed by the chief minister and opposition leader.

“Never before in the history of Malaysia has both parties put aside their political differences to come together to help the people,” he said.

He hoped that with the submission of this joint motion to Datuk Seri Najib Razak, a special taskforce will be set up to address the issue.

“I am sure there are a lot of consequential issues to discuss with Bank Negara, the Housing Ministry and other respective states,” he said.

He also thanked Jahara for agreeing to sign the joint motion with the Pakatan Harapan state government.

“I hope we will be able to meet when a meeting is convened by the federal government on this issue,” Jagdeep said.

The joint motion, signed on February 22, urged the federal government and Bank Negara to immediately resolve the high housing loan rejection rate by commercial banks, especially for low cost, low medium cost and affordable housing buyers.

The motion also urged the federal government to introduce a new housing policy to ensure that low cost and low-medium cost home buyers are not allowed to rent out their premises.

The current provisions under the Housing Development (Control and Licensing) Act, or Act 118, state only a standard format for the sales and purchase agreement for all housing units, without a special clause stating that low cost and low-medium cost units must only be inhabited by its owners.

The joint motion was sent with a cover letter to Najib today and copied to Bank Negara and the Urban Wellbeing, Housing and Local Government Minister Tan Sri Noh Omar.

Source: TheMalayMailOnline.com

What is Skim Pembiayaan Fleksibel (SPEF)?

The Real Estate and Housing Developers’ Association Malaysia (Rehda) would like to see special end-financing schemes, such as the Skim Pembiayaan Fleksibel (SPEF) that was created exclusively for Perbadanan PR1MA Malaysia homes, applied to private developments as well.

Rehda national treasurer Datuk Muztaza Mohamad said this is something the association has been advocating for.

“We have been advocating for that, let them (PR1MA) evaluate the outcome of the SPEF as sometimes there are teething problems … we will keep a close watch on the success of the scheme. If it’s viable, we will ask the government to include us,” he told reporters at the sidelines of the Rehda Institute’s Economic and Business Outlook Conference 2017 yesterday.

Malayan Banking Bhd (Maybank) head of community financial services Datuk Hamirullah Boorhan, who was a speaker at the event, did not rule out the possibility of the SPEF to be offered to non-PR1MA developments.

“On whether we will expand SPEF to non-PR1MA homes, well I guess it’s possible, but the scheme has just been recently launched, and it is something that the central bank and government would have to look at,” he said during a panel discussion at the event.

The SPEF, which is exclusive to PR1MA homebuyers, makes home ownership easier, especially for first-time homebuyers, by increasing their chance of getting a home loan and providing access to a higher loan amount than they would otherwise be eligible for with conventional loans.

Meanwhile, on whether Rehda would be encouraging its members to undertake affordable housing developments, Muztaza said this is something that needs to be government-driven.

“The government should come in as it has money from fiscal policy, and is also more equipped when it comes to lands. For private developers when it comes to pricing of homes it should be market-driven, as we buy the land for development at market prices,” he said.

Property consultancy group Savills Malaysia’s executive chairman Datuk Christopher Boyd, who was also a speaker at the event, said tie-ups among property developers in Malaysia and institutions or pension funds like the Employees Provident Fund (EPF) and the Retirement Fund (Inc) could set the tone for future property projects in the country.

“Land-banking, or in other words buying agricultural sites and sitting on them for years, I think, is going to become a thing of the past, especially for larger property developers. There is too much money tied up in land [already].

“Looking into the future, that may not be the best way to go. These property developers need to collaborate with a financial institution to jointly develop large tracts of land. In other words, don’t just buy plantations and sit on them, but work on building up the value of your brand and delivery system,” he said.

Among property developers who have partnered with pension funds such as EPF on massive development include Eco World Development Group Bhd and Malaysian Resources Corp Bhd.

Source: TheEdgeProperty.com.my

A proposed luxury landed development by Ojy Sdn. Bhd. at Batu Ferringhi, Penang. Located off Jalan Pantai Batu,  next to Shamrock Beach Villas built by the same company about a decade ago. It is only 10 minutes walk to Shamrock Beach.

This development comprises 23 units of 3-storey luxury bungalow houses, offering two different design types. 13 units of which will comes with underground car parking.

This development is still pending for approval. More details to be available upon official launch.

Project Name : (to be confirmed)
Location : Batu Ferringhi, Penang
Property Type : Luxury bungalows
Total Units: 23
Built-up Size: (to be confirmed)
Indicative Price: (to be confirmed)
Developer : Ojy Sdn. Bhd.
Last Update: March 2021

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In a major win for house buyers at the Appellate Court today, housing developers must now honour liquidated and ascertained damages (LAD) or late delivery compensation to house buyers.

During the judicial review hearing, the presiding judge Datuk Hanipah Farikullah granted 104 house buyers an Order of Certiorari, quashing the Urban Wellbeing, Housing and Local Government Minister’s decision to amend the time period for vacant possession of Sri Istana condominium in Kuala Lumpur.

The Appellate Court also ruled that Regulation 11(3) is “ultra vires” the Housing Development (Control & Licensing) Act, 1966 amended 2015, which means that the extension of time (EOT) granted by the Controller of Housing to developers is irregular.

“It literally means that the Controller does not have the power to grant EOT or waive or modify the standard terms and conditions in the statutory sale and purchase agreement (SPA) under the law,” National House Buyers Association (HBA) secretary-general Chang Kim Loong said in a statement today.

“The Minister has no power under Section 24 of the Act to make regulations that allegedly empowers the Controller to waive or change any of the terms and conditions of the prescribed statutory agreement. In short, Parliament does not empower the Minister to do so,” he added.

With this decision, the EOTs issued by the Controller is now void and affected house buyers are entitled to claim for LAD from the developers who had sought EOT.

“Compensation for LAD is payable for late deliveries. The rights and entitlement to LAD cannot be taken away by the Controller or Minister with a stroke of a pen. The general principles of contract still apply,” said Chang.

He said the granting of the EOT to defaulting developers defeats the intent and objective of the Act, which is to protect house buyers.

Recall that the Minister had, in a letter dated Nov 17, 2015, extended the time period for vacant possession of Sri Istana from 36 months to 48 months, which allows BHL Construction Sdn Bhd to avoid paying LAD charges to the affected house buyers.

Under the SPA, developers must complete construction and hand over the housing project within 24 months for landed properties and 36 months for stratified homes, failing which it must pay LAD charges of 10% per annum times purchase price.

Similarly, house buyers who are late in installment payments of the purchase price, must compensate the developer for the delay at 10% per annum.

When contacted by SunBiz, Chang said that the defendants can file for an appeal at the Court of Appeal within 30 days from the receipt of grounds of decision.

“I want them to go higher to a superior court (Federal Court) so that it would be a case precedent for all to adhere,” he said.

Source: TheSunDaily.my