Speaking to FMT, the source said this was because state governments had a say in such discounts.
The source added that removing discounts for such properties was a good idea on paper, but too vague.
“Say you remove the Bumiputera discount, the Bumiputera quota is still there. So it doesn’t automatically mean that the prices of these RM1 million homes are decided by the market.
“This is because if there is still a quota, and an insufficient number of Bumiputeras are able to afford the homes, developers will still need to give discounts to entice them. So what difference will this move make?”
The source also questioned how a BN-led federal government could override state governments in the provision of Bumiputera discounts and housing quotas, as these came under the state government’s jurisdiction.
Meanwhile, the National House Buyers Association (HBA) welcomed the pledge, adding that it had long proposed the abolition of Bumiputera discounts for luxury properties.
“Just imagine a luxury home costs RM3 million. A 7% Bumiputera discount is RM210,000. That money can be used to build three low-cost apartment units worth RM70,000 each for poorer Bumiputeras,” said HBA secretary-general Chang Kim Loong.
He said developers were profit-oriented and forcing them to give discounts would see them raising the prices of other properties to make sure that their profit margins were met.
This would effectively result in a higher cost of home ownership for non-Bumiputeras, Chang said.
He said on top of the abolition of Bumiputera discounts for luxury properties, there should also be a cap on the maximum number of properties Bumiputeras can buy at a discount.
He said if there was no cap, more affluent Bumiputeras could buy several homes under RM1 million at discounted prices, depriving other less privileged Bumiputeras.
“If there is no cap, the richer Bumiputeras can buy multiple properties at lower prices and resell them for a quick buck. That is why HBA proposes that Bumiputera discounts be limited to two properties per person, to prevent abuse.”
He added that Bumiputera discounts should be limited to private residences, and not commercial properties.
The pledge to end the Bumiputera lot discounts for properties valued at RM1 million and above was part of BN’s election manifesto, unveiled on Saturday by its chairman Najib Razak.
Aside from the abolition of Bumiputera discounts for properties valued at RM1 million and above, the manifesto also promised the setting up of a special bank to facilitate loans for homes priced RM300,000 and below, as well as tax incentives for banks and developers who offer rent-to-own schemes.
BN manifesto: Special housing bank, no more Bumi discount for RM1 mil above