PROPERTY GURU. 18TH OCTOBER: Prime Minister Datuk Seri Anwar Ibrahim announced that the government will lower the requirement for en bloc sales to secure 100% approval from apartment owners at a strata property scheme.
Meanwhile, the government plans to establish the country’s first Bandar PR1MA project at a 57.5ha land situated near the Universiti Pendidikan Sultan Idris (UPSI) campus’ construction site.
1. Proposal for easier sale of apartment blocks “a shame”
Prime Minister Datuk Seri Anwar Ibrahim announced that the government will lower the requirement for en bloc sales to secure 100% approval from apartment owners at a strata property scheme.
He said it will be reduced from 100% to a level that is consistent with international standards such as Singapore.
He added that the move is aimed at encouraging the redevelopment of cities as well as older properties. It will also urbanise rural areas, said Anwar during the tabling of 2024 Budget.
The National House Buyers Association (HBA), however, has criticised the proposal, calling it “a shame”.
HBA secretary-general Chang Kim Loong noted that allowing en bloc proposals to be approved by the majority would deprive some owners of their properties.
The Real Estate and Housing Developers’ Association of Malaysia pointed that while en bloc sales are a necessary evil in Singapore, this does not apply to Malaysia since it is not so densely populated and has vast amount of land.
2. Malaysia’s first Bandar PR1MA to rise in Teluk Intan
The government plans to establish the country’s first Bandar PR1MA project at a 57.5ha land situated near the Universiti Pendidikan Sultan Idris (UPSI) campus’ construction site.
Local Government Development Minister Nga Kor Ming shared that the stimulus project will have an estimated gross development value of RM800 million and will feature various facilities and unique attractions for residents to enjoy.
He added that the Bandar PR1MA will have around “1,700 newly designed People’s Housing Project (PPR) units valued at RM100 million”.
Nga, who also serves as Teluk Intan Member of Parliament, revealed that the construction of the project is still in its planning stage and the groundbreaking ceremony is set to be held next year.
3. MM2H rules relaxation to be offset by 4% stamp duty on foreign buyers
Maybank Investment Bank (IB) expects the introduction of a 4% stamp duty on foreign buyers to offset the positive impact of the government’s decision to relax the existing Malaysia My Second Home (MM2H) requirements.
Although the more lenient MM2H rules will benefit the local property industry in terms of demand and rental market, the imposition of a fixed 4% stamp duty on foreign buyers may lead to a 63% hike in stamp duty fees for a property priced at RM1.1 million per unit, said the research house.
However, its impact will not significantly affect property demand since foreign buyers make up less than 10% of total property transactions, the weaker ringgit makes Malaysian properties relatively cheaper than those in neighbouring countries and the 4% stamp duty is way lower compared to Singapore’s 60% stamp duty rate.
With this, Maybank IB Research made no changes to their earnings forecasts as well as on stock and sector ratings. The research house maintained a neutral rating on Malaysia’s property sector, with Sime Darby Property Bhd and SP Setia Bhd as its top picks.
4. Local councils tasked to identify sick projects
The state government of Johor has mandated all 16 local councils to identify sick housing projects, with the aim of finding solutions to revive them.
So far, the state had solved six sick housing projects from 2022 up to October this year, shared Datuk Mohd Jafni Md Shukor, Chairman of the Johor Housing and Local Government Committee.
The projects had been granted Certificates of Completion and Compliance (CCC), with the keys handed over to the property owners.
Involving 1,073 housing units, the projects have a total property value of over RM260 million.
The revived projects are Taman Kota Jaya 2 Kota Tinggi, Residensi Prima Kota Tinggi, Taman Desa Impian Tenggara, Taman Saujana Jaya Kulai, Taman Impiana Kulai and Taman Tanjung Puteri Pasir Gudang.
Mohd Jafni said the state had set up a special committee, known as the Abandoned Project Monitoring Committee (JPST), which will oversee the rescue operations.
Established last year, the committee comprises 16 local councils, the Johor Housing Development Corporation (PKPJ) and state technical agencies.
He noted that sick housing projects are treated on a case-by-case basis, with measures such as legal actions recommended in cases where developers could not fulfil their obligations.
5. Govt urged to extend RPGT waiver to all segments to reduce property overhang
The Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector (PEPS) has called on the government to extend the real property gains tax (RPGT) exemption to all segments, including expatriates as well as foreign firms.
At present, the RPGT waiver for real estate sales from the sixth year only applies to Malaysian citizens, Malaysian corporations and permanent residents.
PEPS pointed that the property industry faces various challenges, including oversupply in the retail, office and service apartment sectors.
The association also suggested a review of the Malaysia My Second Home (MM2H) conditions to make it more attractive for foreign property buyers, helping reduce overhang.
PEPs also underscored the difficulties facing many Malaysians when buying a home, amid the rising interest rates and a stagnant economy.
They also urged the government to promote the rent-to-own (RTO) scheme, especially for PR1MA homes with an oversupply. This would help those from the B40 income group get up the property ladder.
6. Works Ministry to complete Pan Borneo Highway in a timely manner
Deputy Prime Minister Datuk Seri Fadillah Yusof is confident that the Works Ministry will complete the Pan Borneo Highway (LPB) project in a timely manner, while adhering to the quality standards and budget agreed upon.
He expects Phase 1 of the project in Sarawak to be completed by 2025, except for Miri.
Phase 1A in Sabah, which is now 85% complete, is projected to be completed also by 2025. Phase 1B will start following the finalisation of tender, with completion expected to take five years.
The Sabah Pan Borneo Highway project covers 35 work packages along 706 kilometres, spanning from the border of Sabah and Sarak in Sindumin to Tawau.
However, Phases 2 and 3 of the project in both states are anticipated to take longer due to differences in topography.
“Despite the fact that the design and quality standards remain the same, these differences necessitate different implementation (construction) methods,” said Fadillah.
With this, the minister encouraged contractors to collaborate with experienced companies from the peninsula, Sabah and Sarawak to ensure successful implementation of the project.
7. Construction of JB-Singapore RTS link project now at 52%
The progress rate for the Johor Baru-Singapore Rapid Transit System (RTS) Link is now at 52%.
Mass Rapid Transit Corporation (MRT Corp) CEO Datuk Mohd Zarif Hashim said the project is now entering its peak phase, with comprehensive construction activities expected to reach its maximum level by June 2024.
These include the depot, platform, an overpass linking the depot to the station and the Immigration, Customs and Quarantine (ICQ) complex.
To ensure smooth traffic flow in Johor Baru, particularly on Jalan Tun Abdul Razak close to JB Sentral, motorists are requested not to park their vehicles or wait for passengers along such route.
Mohd Zarif revealed that the construction for the ICQ complex is on schedule, with completion expected in September 2026.
He noted that travelling between Johor border and Singapore will be reduced to just 15 minutes once the RTS link is completed, down from the one to two hours on the normal route through the Johor Causeway.