PROPERTY GURU. 29TH MAY: Penang has issued a ban on all forms of short-term rental accommodation (STR) within private residential properties on the island.
Meanwhile, the state government of Perak has taken several measures to protect and restore Malay reserve land’s status, such as entering a new caveat to ensure that such land is only transferred to Malays in future.
1. Penang introduces ban on short-term rental accommodations on the island
Penang has issued a ban on all forms of short-term rental accommodation (STR) within private residential properties on the island.
Effective immediately, the ban covers Airbnb or booking.com stays and excludes six commercial property types – namely, serviced apartments, small office flexible offices (SoFo), small office home offices (SoHo), small office virtual offices (SoVo), duplex offices and office suites.
Those looking to offer STRs in these properties will have to obtain approval from their respective management corporations (MCs) or joint management bodies (JMBs) – which require a 75% “yes” vote from the other residents during an annual general meeting.
Once approved, an annual fee of between RM250 and RM500 per unit will be collected, plus a one-time security deposit of between RM1,000 and RM3,000.
Each unit can only be rented for up to 180 days per year, with rental limited to just three days per week.
The ban does not apply to mainland Penang.
Meanwhile, Airbnb has criticised the restrictions, saying it would affect the state’s economy.
2. Perak takes steps to restore Malay reserve land
The state government of Perak has taken several measures to protect and restore Malay reserve land’s status, such as entering a new caveat to ensure that such land is only transferred to Malays in the future.
Mentri Besar Datuk Seri Saarani Mohamad said the state has formed a special committee which proposed several measures.
“Among the steps taken are to make restrictions by entering the Registrar’s Caveat for the 3,214ha land mentioned in the report to have changed ownership to non-Muslims in Sitiawan 2, as well as other lots there (Sitiawan) which were involved in development projects,” he said, referring to the 2021 Auditor-General’s Report.
The state also requires that any sale of land within the Sitiawan 2 area should be 100% to Malays.
As such, companies that do not meet the criteria as a Malay firm will be removed from the list.
The state is also negotiating with landowners and developers to gazette lands within Sitiawan 2 or other places as Malay reserve land.
“So far, a total of 183.3ha have been identified by the PTG to be gazetted as Malay reserve land after obtaining the consent of the landowners who developed the area,” said Saarani.
3. No youth housing scheme project implemented by previous government
The previous administration has not implemented any of the youth housing schemes they announced between 2018 and 2021 – namely, the Rumah Transit Belia (RTB) and Perumahan Transit Belia (MyTransit).
Deputy Local Government Development Minister Akmal Nasrullah Mohd Nasir revealed that the new administration reviewed the proposed projects to study the cause of their failure.
“In February, we reviewed (the proposed projects), then we further detailed the agreement with the companies (developers) for them to fulfil the condition precedent (CP) and the demands to start the project,” he said.
“The challenge for us (the unity government) is that, despite the fact that the project’s concept was initiated in 2017, no progress has been made. God willing, this time we will put in efforts to materialise it,” added Akmal Nasrullah.
He also said the ministry will review the National Housing Policy in view of the various housing schemes offered by the government.
“Various housing schemes are introduced to meet the needs of various groups, but when there are differences in schemes, there is inefficiency that leads to some groups being left out or marginalised,” said the minister.
4. Number of unsold houses down in Q4 2022
The number of completed but yet-to-be-sold homes in Malaysia has declined to 27,746 units, valued at about RM18.45 billion, in the fourth quarter of 2022 from 35,592 units, worth RM22.45 billion, in the first quarter of 2022.
Most of the unsold homes were priced from RM500,001 to RM1 million.
Local Government Development Minister Nga Kor Ming said the ministry is studying the data of the unsold house to determine a suitable solution and urged developers to conduct feasibility studies first before embarking on any new project.
He noted that some of the factors contributing to the mismatch in supply and demand were unaffordable prices, styles of homes that buyers were not interested in and the lack of public transport access.
With this, the ministry will develop a housing data centre that will serve as a centralised reference for housing data.
“Once the housing data centre has been developed, the ministry expects this issue to be handled more effectively through more accurate and careful planning,” said Nga.
5. PKNS expects partnership with BSN to boost home loan applications
The Selangor State Development Corporation (PKNS) believes that its partnership with Bank Simpanan Nasional (BSN) will lead to over RM100 million in housing loans for its projects.
Under the partnership, home buyers can secure home loan financing with up to 100% margin, legal fees, mortgage takaful protection and appraisal fees over up to 35 years.
They also have a chance to win up to RM50,000 in home furnishing package.
“The strategic collaboration represents one of the efforts to attract potential house buyers to own their dream home. BSN will offer various loan packages tailored to their (home buyer) customers’ needs and what they qualify for to obtain a comfortable and affordable home,” said PKNS CEO Datuk Mahmud Abbas.
He noted that the partnership will “help improve the development of the housing sector,” particularly in Selangor.
6. MM2H applications drying up due to stricter conditions
The Malaysia My Second Home (MM2H) programme registered a significant drop in applications, falling 90% as new applications from places such as Hong Kong, China, Europe, Australia and the United Kingdom dry up.
MM2H consultant Tara Lim attributed the decline to the new “unfriendly” requirements, which include a monthly offshore income of at least RM40,000 and a minimum stay of 90 days per year.
“Those who can meet the RM40,000 monthly income criterion will then face difficulty in fulfilling the minimum 90-day stay, as they have jobs in their countries and will have problems getting leave from their employers,” noted Lim.
Those who had successfully obtained approval letters are hesitant to proceed as they fear further changes in the criteria, she said.
“I have to assure them that the current Malaysian government is friendly to both foreigners and investors,” shared Lim.
Meanwhile, Datuk Jerry Chan, Chairman of Real Estate and Housing Developers Association (REHDA) Penang, called on the government to revert to the programme’s original guidelines, saying that the changes are not only detrimental to the real estate sector but also to the country’s overall economy.