Melaka Still Has Lowest Home Prices In Malaysia, Pan Borneo Highway, MRT3 Projects To Continue As Planned And, More
19th July – 25th July
Melaka still has the lowest home prices in Malaysia, with the average index price at RM181,203 per unit during the first quarter of 2022.
Meanwhile, the government assured that mega projects such as the Pan Borneo Highway and the Mass Rapid Transit 3 (MRT3) project will continue as planned and will not be deferred.
1) Melaka still has lowest home prices in Malaysia
Melaka continues to offer the lowest home prices in Malaysia, with the average index price at RM181,203 per unit during the first quarter of 2022.
Chief Minister Datuk Seri Sulaiman Md Ali pointed that a terrace homes within the state have an average price of RM181,428 in Q1 2022, reported Bernama.
He revealed that there are currently 211,049 housing units within the state, 21,511 units under development while 11,768 units are in planning stage.
“The state government is also targeting home ownership in the state to touch 88% by 2030, involving 244,508 units,” said Sulaiman.
“So far, home ownership in Melaka stands at 83.5%.”
He noted that the spike in raw material prices to almost 40% since 2021 is expected to directly impact the growth of home prices in the future.
2) Pan Borneo Highway, MRT3 projects to continue as planned
The government assured that mega projects such as the Pan Borneo Highway and the Mass Rapid Transit 3 (MRT3) project will continue as planned.
Economic Affairs Minister Mustapa Mohamed explained that the only 30 projects had been identified by the government for postponement this year, reported Free Malaysia Today.
“Projects such as MRT3 will be continued, as will the ECRL (East Coast Rail Link) and the Pan Borneo Highway. So what will be delayed are new projects that have not started yet and have not been advertised,” said Mustapa.
“We have identified 30 projects involving a cost of more than RM100 million (that will be postponed), only a small number.”
He made the statement in response to Fahmi Fadzil (PH-Lembah Pantai) question regarding the government’s plans to postpone or cancel new projects.
Last week, Mustapa had revealed that the government plans to cancel or defer new projects so that more funds can be allocated for welfare programmes.
3) Johor to create PPR tenant profiles to address subletting issues
In a bid to address subletting issues, the government of Johor is creating a profile of tenants at People’s Housing Project (PPR), with data compiled from Pasir Gudang City Council (MBPG), Iskandar Puteri City Council (MBIP) and Johor Baru City Council (MBJB).
“It is being done by Johor Housing Development Corporation and involves 20 PPRs, including rumah sewa kerajaan (RSK),” said State Housing and Local Government Committee Chairman Datuk Mohd Jafni Md Shukor as quoted by The Star.
He noted that the study is expected to be completed in four to five months.
“Only then can we identify whether subletting of units to a third party is taking place,” said Mohn Jafni.
He explained that PPR were built to provide families and individuals an opportunity to rent a housing unit for two to five years until they are financially stable.
4) Stamp duty exemption to spur transactions in primary home market
While market watchers expect the stamp duty exemption for first-time homeowners to have a muted impact on the overall property market, the waiver should help spur transactions in the primary housing market.
Datuk Siders Sittampalam, Managing Director at PPC International, described the incentive as timely, saying it augurs well for the primary housing market given the interest rate hikes, reported The Star.
In fact, Tan Sri Leong Hoy Kum, Founder and Group Managing Director of Mah Sing Group Bhd, expects the incentive to encourage home buyers to acquire their first home.
RHB Investment Bank, on the other hand, expects the stamp duty exemption to have a minimal impact in view of the current economic headwinds, such as the softening ringgit and rising inflationary pressure.
“Coupled with the expectation of higher interest rates ahead, many potential property buyers will likely hold back their purchases over the near term,” it said.
5) Mantin affordable housing project to be completed in 2026
An affordable housing project with a gross development value (GDV) of about RM220 million is set to be developed in Mantin, Negeri Sembilan.
“The implementation of the project is expected to begin by the end of this year. We have identified potential land in the Mantin area to develop quality and comfortable affordable housing worth RM80,000 to RM360,000,” said Negeri Sembilan Investment, Industry, Entrepreneurship, Education and Human Capital Action Committee Chairman Datuk Mohamad Rafie Ab Malek as quoted by Bernama.
A joint project of Perbadanan Negeri Sembilan and Multiplex Development Sdn Bhd, the housing project will occupy a 24.63ha site and feature 800 affordable housing units. The development also comes with various facilities including a kindergarten, a playground, surau and flood reservoir.
It is set to be completed in 2026.
6) IJM Land, partners RHB Bank for a buy-back scheme
IJM Land Bhd, in collaboration with RHB Bank Bhd, launched a buy-back scheme for home buyers as well as homeowners.
Dubbed SWITCH, the scheme allows homeowners to return their housing unit to the developer in case of involuntary unemployment during the coverage period. This starts from the date of the Sale and Purchase Agreement to the date of the Certificate of Completion and Compliance, reported the New Straits Times.
The pilot projects under the scheme are Duta Perintis Apartments @ Bandar Alam Suria and the 722-unit Savvy @ Riana Dutamas KL.
“IJM Land has always been devoted to the aspiration of Malaysians who yearn to own a place called home. We are working diligently towards ensuring that their dreams will become a reality, and together with RHB as our partner, this entails the creation of value-added packages, one-of-a-kind campaigns, benefits, and incentives that will make home ownership easier and less burdensome for all,” said Datuk Edward Chong, Chief Financial Officer at IJM Corp Bhd.