THE EDGE. 29TH SEPTEMBER: The Real Estate and Housing Developers’ Association (Rehda) Malaysia is optimistic that the upcoming Budget 2024 announcement on Oct 13 will put the rakyat’s needs first and address barriers to homeownership, according to a statement issued on Friday (Sept 29).
Rehda Malaysia president Datuk NK Tong hopes Budget 2024 will make allocations to ease homeownership among Malaysians, as well as provide provisions to alleviate challenges facing developers.
“Housing affordability remains a major issue for the rakyat and industry alike, which is why we hope for the reintroduction or introduction of incentives that will allow more Malaysians to buy a house to call their own. These include incentives in the form of tax deductions, grants as well as lower interest rates that will surely lessen the burden of future homeowners, particularly first-time buyers.
“Member developers have also voiced their request for the Home Ownership Campaign to be continued, as its two iterations in 2019 and 2020-2021 have not only helped thousands of Malaysians own their dream home but also contributed significantly to the country’s GDP,” said Tong in the statement.
He also noted the correlation between rising costs of building materials and rising house prices, suggesting that “government interventions such as a temporary reduction or removal of import levy would definitely go a long way to mitigate the problem. Similarly, housing prices are being adversely impacted by the rising cost of land.”
The statement goes on to cite a comment made by Employees Provident Fund chief strategy officer Nurhisham Hussein calling for an overhaul of state financing to make housing more affordable, highlighting how various forms of property tax, such as land conversion premiums, contribute to 95% of state income.
“As developers, we concur that if charges imposed by state governments and local authorities are reduced, house prices will most likely be reduced through all levels, making homeownership more attainable for the rakyat,” said Tong.