PROPERTY GURU. 25TH APRIL: 19th April – 25th April
Suraya Ismail, Research Director at Khazanah Research Institute believes that a review of financing schemes to make homes more affordable for low-income earners would not be a “smart” thing to do.
The Johor State Housing Development Corporation (PKPJ) will be taking a leaf from Singapore’s Housing Development Board (HDB) in delivering comprehensive affordable housing development plans at all the state’s districts.
1) Easing financing schemes for low-income earners not a smart move
Reviewing financing schemes to make homes more affordable for low-income earners would not be a “smart” thing to do, said Suraya Ismail, Research Director at Khazanah Research Institute.
This comes as an easing of such schemes may only exacerbate the financial distress of such group, warned Suraya.
She explained that income and home prices are not the only determinants of loan approval, with banks also looking into other factors such as the applicant’s debt commitment.
Suraya noted that “each bank has to perform due diligence” with regard to these factors. “The rejection of loan applications may indicate that these potential buyers may be over indebted,” she said.
2) Johor to take a leaf from Singapore’s HDB
The Johor State Housing Development Corporation (PKPJ) will be taking a leaf from Singapore’s Housing Development Board (HDB) in delivering comprehensive affordable housing development plans at all the state’s districts.
To do this, Mentri Besar Datuk Onn Hafiz Ghazi said drastic steps will have to be taken by PKPJ, such as having a detailed housing development planning database with other agencies like the local authorities, PR1MA Corporation Malaysia, the Finance Ministry, banks as well as the Town and Country Planning Department (PLANMalaysia).
He added that PKPJ should also ensure that all development plans are implemented based on schedule and timeline.
“InsyaAllah, the state administration that was formed with the strength of PKPJ and coordination with other departments, this intention and commitment will be successfully realised,” said Onn Hafiz.
3) Mixed views on proposed law on tenancy
The proposed Residential Tenancy Act, aimed at dealing with racism within the residential market, was met with two opposing views on when it should be tabled in Parliament.
National House Buyers Association’s Secretary-general Chang Kim Loong believes the new law is unnecessary at this time and urged the government to focus on the economy instead.
“The focus should be on reviving the economy. Perhaps the proposed RTA should be revisited in five years’ time,” he said. He added that the new law would not be able to reduce racism – which is “prevalent not only in the tenancy market but in other areas of life and society” as well.
James Raj, an officer of the all-party parliamentary group on sustainable development, however, wants the Act tabled at the next Parliament meeting in July.
He explained that the Act can deal with racism issues if the new law contains enforcement provisions, like penalties on landlords practicing racial preferences in their advertisements.
4) Too early to say border reopening would boost MM2H programme
An economist believes it is still too early to say whether the reopening of borders would provide an automatic boost to the Malaysia My Second Home (MM2H) programme.
Centre for Market Education Chief Executive Officer Dr Carmelo Ferlito said it will depend on the evolution of the country’s political and economic scenario.
“I think with the current conditions which are more stringent than before, we can consider the MM2H as a dead programme,”, explaining that the programme’s costs and procedures make the country a poorly attractive destination for foreigners.
However, Chan Wai See, Executive Director of CCO & Associates (KL) Sdn Bhd, expects the MM2H programme to benefit from the border reopening, albeit the programme’s stricter rules may deter foreigners from applying.
“It is important to note that the current MM2H programme is at the bottom of the cycle. So, the only way is up, going forward…However, we believe that many interested applicants may put on hold their plans due to the recent change in the rules,” said Chan.
5) Works at Conlay MRT station site keep nearby residents up
Condominium residents near a Mass Rapid Transit (MRT) construction site at Jalan Stonor in Kuala Lumpur have been complaining of sleepless nights amid the noise of machinery and heavy vehicles.
1A Stonor condominium resident, who wished to be known only as Lim, shared that the noise made by trucks moving in and out at the Conlay MRT Station site disrupts their sleep.
MMC-Gamuda KVMRT (T) Sdn Bhd, the project’s turnkey contractor, explained that they have a schedule in which they sequence noise-generating works during the day.
However, there would “inevitably be occasions where the concrete truck arrives late in the evening and the concrete must be poured immediately before it hardens and becomes unusable”.
“We seek the understanding of our stakeholders as we build for the future and strive to deliver the Serdang-Sungai Buloh-Putrajaya Line safely and in time to the public,” it said.
6) 1,500 homes worth RM70,000 each to be given to needy Sabahans
The state government of Sabah is set to give out 1,500 units of the “Rumah Mesra Sabah Maju Jaya (SMJ)“ houses to needy Sabahans.
Costing around RM70,000 each, the houses will be built at all the 73 state constituencies, with the recipients identified by the municipal council presidents, city council mayors and district officers, shared Chief Minister Datuk Seri Hajiji Noor.
He explained that the state will use the RM125.6 million special grant from the federal government to develop the housing project, which was previously called the Housing Project for the Hardcore Poor or PPRT.
“This allocation (special grant for Sabah) has to be given back to the people, especially those who can’t afford proper homes. So we decided to build the Rumah Mesra Sabah Maju Jaya,” he said.