Hornbill Unleashed

October 4, 2014

Top budget wish list – house price controls

Filed under: Politics — Hornbill Unleashed @ 8:00 AM
Tags: , , , ,


With Budget 2015 just around the corner, rising housing prices remain a top concern for Malaysians.

According to property listing website iProperty.com, 62 percent of 5,000 respondents surveyed by the website hope measures for control of property prices will be introduced with the budget, to be unveiled on Oct 10.

iProperty chief executive officer Georg Chmiel said this is “not surprising” as respondents said that the affordability level of properties in Malaysia is 7.29, on a scale of 1 to 10, with 10 being not affordable at all.

“Rising property prices, tighter bank regulations on housing loans, topped with the removal of the Developer Interest Bearing Scheme (DIBS) has made it more difficult for property buyers, especially first time home buyers, to purchase a property.

“As such, it is not surprising that Malaysians are calling for the government to step up their efforts in building more affordable housing in strategic locations along with better public transportation in Budget 2015,” Ghmiel said in a statement.

He said that half of those surveyed were looking for property costing below RM500,000, and hope that the government will incentivise developers to build more units within that price range.

Even so he said, official data showing that 80 percent of Malaysians earning less than RM6,900 a month indicating that most Malaysians cannot in fact afford homes costing more than RM300,000.

“According to Selangor State Development Corp (PKNS), there was a 70 percent rejection rate for first-time house buyers,” he said.

He said Malaysians are priced out despite nationwide house prices rising at the lowest year-on-year rate in the first quarter of 2014, since the fourth quarter of 2010.

He said that based on official data, house prices rose by 8 percent, or 4.35 percent inflation-adjusted, in the first quarter of this year compared to the same period last year.

More of the same thing

Meanwhile, PAS’ Kuala Nerus MP Mohd Khairuddin Aman Razali urged the government to break from the usual budget mould of dishing out goodies and look towards sustainable social welfare.

“It is likely that it will be more of the same. Budget 2015 will likely be filled with sweeteners through giveaways like Bantuan Rakyat 1Malaysia (BR1M) which I one off and cannot strengthen the household economy in the long term.

“The implantation of the regressive goods and service tax will also cause inflation and cause negative impact on the property market, but the government is likely to ignore this,” he said.

He said the Keynesian economic model of expanding public expenditure at times of economic downturn is against Islamic principles.

This, he argued, is because the government will need to fund the expenditure through debt or taxation.

He said that this is especially so in the case of the GST, which hurts middle and lower income citizens the most.

1 Comment »

  1. It is indeed sad to note that we pensioners are really suffering in silence with the mere pension of less than RM3000., I am no exception to this predicament. The total bills, food ,medicine and etc. etc. is not sufficient “to breathe”. What more else can we do at this old age. Our health conditions does not allow us for a second job. The govt has forgotten we pensioners as we have no other source of income except the monthly pension. Not all pensioners are looked after by their children.They too have their own commitments and we sickly will be an extra burden to the children. The PM must be in “our shoes” to experience reality. It is no use giving “empty promises” while sitting “comfortably” in the chair. Pls do not forget that we are the pensioners who voted you all who are enjoying the “shelter ” of Putrajaya. The govt must be grateful to help those who have helped them . Do something concrete apart from the cash handouts that may not even last one month. What more do you want.? We have to eat “grass after that. Am I right pensioners. Pls wake up and speak up.

    Comment by Velu — October 5, 2014 @ 11:30 AM | Reply

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