THE National House Buyers Association (HBA) welcomed the Government’s move to allocate a whopping RM1.5 bil to build affordable properties across the country.
However, the non-governmental organisation (NGO) urged the authorities to overhaul its bureaucracy to ensure the noble intention gets carried out effectively.
“The allocation will definitely help build comfortable and quality homes for the lower income group. This is a noble aspiration by the Government is to ensure that everyone, including the lower income segment, has access to comfortable and quality housing.
“But we need to address a few issues pertaining to the matter so that the programme can be effectively implemented,” its honorary secretary general Datuk Chang Kim Loong said.
First up, the NGO said that the Government must set affordable housing pricing at RM300,000, with a minimum build-up of 900 square feet (sqm) excluding the balcony area.
He also said that its location must be near public amenities such as rail transport system (MRL/LRT) schools, hospitals and others.
All the bureaucratic process to build the affordable housing, Chang added, must be managed by a “single umbrella body” to coordinate its distribution and availability effectively.
“It seems that the local councils and land offices have their own directives from their state governments to impose a mandatory ‘low, medium and affordable costs’ housing categories.
“Have they have been overzealous in carrying out the directives? Has anyone made a last count of the numbers of low-cost units that are available in the market but left unsold? Has there been overhang of such properties?” Chang queried.
He also asked on why the Government has yet to establish a single agency to manage the programme, where information can be collected to help identify total numbers of such units being built, the location and pricing.
“With a click of a button, one must be able to get the information that he or she requires such as types, makes, location and price of the available units of house/ stratified properties.
“For example, the potential buyer should be able to find their dream single-storey measuring 22’ x 70’ terrace, priced at approximately RM180,000 at Ulu Yam, Selangor. The Government or the related ministry should set up a database on housing projects,” Chang stressed.
He added that government agencies should not build an apartment block in a place where there is only demand for landed property or built houses.
“Or we may end up building homes where there is no demand, which will just add to the statistics of overhang properties,” Chang quipped.
Helping those in the informal sector
On that note, he also lauded the Government’s move to abolish Real Properties Gains Tax (RPGT) for properties held for more than six years.
“We had urged the Government several times in the past to abolish RPGT for properties held for more than six years as it was meant to be an anti-speculative tax.
“It’s obvious that properties held for more than six years cannot be deemed as speculative investments but mid to long term investments. Congratulations on that,” Chang added.
On related matter, Chang welcomed the RM2 bil allocated for the Housing Credit Guarantee Scheme, dedicated for workers without stable income such as those in the gig economy.
He also said that this will help those working in the informal sector to have access to financing schemes to purchase homes, despite not having consistent income.
“They also may lack documentations needed by the banks to buy homes, as opposed to fixed salaried workers.
“However, this new scheme will help them but HBA would like to urge the Government to ensure the programme is limited to first time house buyers, specifically for affordable housing,” Chang remarked. – Oct 30, 2021.
