BY: SALKUKHAIRI BIN ABD SUKOR
The Malaysian Property Legal Association (HartaGuam) is of the view that Selangor government’s new policy to ensure developers build affordable housing for every service apartment, SOHO (home office) and Sove (home virtual office) development is a step towards a better control in house pricing.
The policy is in line with HartaGuam’s proposal previously seeking either the state or federal government to introduce a ceiling price on every property in order to control prices that are increasing every year.
The policy should also be extended to all types of residential properties and not just limited to service apartments, SOHO and Sovo alone.
The policy reportedly requires a developer to build 10% to 20% of affordable properties at a price between RM230,000 to RM270,000, compared to the market prices of Novo and SOHO which are now over RM450,000 to RM500,000.
Although the policy eliminates the 10% discount for bumiputera, it is seen as unlikely to affect bumiputera ownership of properties.
There is no point in offering a discount to bumiputera when the developer’s sales price is originally not affordable particularly to the youth.
More details required
As an example, if the original sales price exceeds RM500,000, even with the 10% discount offered to bumiputera, it is still an unaffordable price to those with middle-income.
Finally when no bumiputera can afford to buy, the property will be offered to the non-bumiputera.
On the other hand, setting a bumiputera ceiling price for any new housing project would provide the opportunity to those with middle-income to own a house.
Nevertheless, the policy should not end there.
It should be detailed out more to prevent people from buying houses in bulk and then selling them to the public with higher prices.
The quota should be made limited only to those with middle income who have not yet owned any houses.
Basic fair policy
The selection process should be reviewed further and tightened to ensure that only those who are truly eligible can make the purchase.
Most importantly, the state government needs to expose and train the youth and middle-income bumiputera from early on.
This is to ensure they plan and manage their income well before deciding to purchase properties in that category.
There is no use in introducing a ‘fair price’ policy with the aim for more youth and middle-income people to own houses when they cannot even get a housing loan from the bank.
This is due to failure in planning and managing their income from the very beginning.
The policy will then certainly not achieve its objective.
* SALKUKHAIRI BIN ABD SUKOR is the Malaysian Properties Legal Association (HartaGuam) President.
Controlling prices are better than discounts
