Property developers usually find it hardest to fully sell off the Bumiputera quota in their respective housing developments, which in turn affects their cashflow.
Seriously, developers just want to sell all the units built so they can move on to the next project. Else, the holding costs for these units will likely be high as it will likely be months to years before the units are either sold or the quota released.
This is also one reason why property is priced higher too. The unsold units are considered a cost and this cost has to be borne by someone.
In an article in FreeMalaysiaToday, “Bumiputera quota for affordable housing to be reviewed, says Zuraida (Kamaruddin)”, the minister of housing and local government said that the review would include having standardised pricing for affordable homes in the country.
She said, “The ministry needs some time to review and get feedback from industry players and home buyers. Basically, the people will be assessed based on their income instead of race. If we set the affordable homes for only those earning RM3,000 and below, we will use the guideline regardless of religion and race.”
Recently, Real Estate Housing Developers Association (Rehda) president Soam Heng Choon proposed the review of the Bumiputera housing quota policy to allow for the automatic release of completed but unsold Bumiputera units.
So what did Zuraida say about the sales and services tax (SST) exemption on construction materials? She said besides cheaper house prices, developers could also offer “more value for money” for buyers of affordable homes.
There are many Bumiputeras who buy non-Bumiputera units too. Assuming this is just a small 5%, how about using this number as an automatic release of the designated Bumiputera units?
As for the rest of the Bumiputera units, the upcoming policy from KPKT should be on helping any Malaysian needing assistance to own a home, simply because without a roof over their heads, any household will be held ransom to rentals.
When we look at advanced nations in the world today, failing to own property is usually one of the major causes for continuous poverty.
Imagine setting aside more than half of one’s monthly salary just for rental. There’s no way out for many of these families. So let’s help them.
This article first appeared in kopiandproperty.com
Charles Tan blogs at property investment site kopiandproperty. He dislikes property speculators and disagrees that renting is better than buying. He thinks it’s either property or poverty. He is presently the CEO of an auction house auctioning assets beyond just properties.