States Offering Free Land To Be Given Priority, Johor Introduces Housing Scheme That Allows Tenants To Save And, More
14th March – 20th March
The Ministry of Local Government Development (KPKT) said states that offer strategically located land for free or at a nominal cost will be given priority to develop people’s housing projects (PPR).
Meanwhile, the Johor government has launched a housing scheme, in which part of the monthly rental payment will go towards savings.
1. States offering free land to be given priority
States that offer strategically located land for free or at a nominal cost will be given priority to develop people’s housing projects (PPR), said the Ministry of Local Government Development (KPKT).
This will enable the government to allocate more funds for the construction of the homes instead of paying the cost of land.
“This is because according to past experience, 30 to 35% of PPR costs was to pay for the land premium rate so we had to forego on the quality of the houses,” explained KPKT Minister Nga Kor Ming as quoted by Bernama.
He urged Kelantan to show its commitment to work with the federal government to ensure the success of the mission.
For this year, the federal government has set aside RM387 million and another RM385 million from Prime Minister Datuk Seri Anwar Ibrahim for user-friendly homes, totalling over RM700 million.
2. Johor introduces housing scheme that allows tenants to save
The Johor government has launched a housing scheme, known as the ‘Ruman Transit Bangsa Johor’ (RTBJ), in which tenants pay a monthly rent of RM650.
Of these, only RM455 will go towards the actual rent of the housing unit while the remaining RM195 will constitute the tenant’s savings, said Menteri Besak Datuk Onn Hafiz Ghazi.
“Therefore, over a period of five years, an individual will have a savings of RM11,000. This money (savings) can then be used to pay the deposit for the house,” he said as quoted by Bernama.
He revealed plans to build 92 units under the scheme this year and another 500 units over the next five years.
He also lauded the Johor Development Corporation (PKPJ) for the various reforms it implemented.
He noted that PKPJ solved 300 long-overdue files, involving releases and offers of Bumiputera properties, within four months. It also resolved 2,800 strata title rights within one year, of which some were 10 years overdue.
3. Strata Management Act to be amended soon
The Local Government Development Ministry said the government will be reviewing the Strata Management Act 2013 (Act 757) for amendment soon.
Its Deputy Minister revealed that the issue of inactive or failure to appoint management committees or joint management bodies will be scrutinised during Act 757’s review, reported Free Malaysia Today.
He underscored that 1,084 out of the 4,218 low-cost flats nationwide are still without management committees or joint management bodies as of 31 January.
He made the statement in response to Syahredzan Johan’s (PH-Bangi) query on the number of low-cost flats with no active management committees or joint management bodies.
Akmal shared that the ministry has conducted awareness campaigns on the importance of having such committees, kept a list of flats with no such committees, while the Commissioner of Buildings (COB) has been directed to appoint management agents.
He added that the ministry has also provided technical advice to the COB.
4. Planning permission for stadium redevelopment to be issued in April
The planning permission for the redevelopment of the Shah Alam Sports Complex (KSSA) is expected to be issued in April, said the Selangor government.
Spread across a 69.53ha site, the entire project would involve Stadium Malawatim Stadium Shah Alam and other elements, reported The Star.
Mentri Besar Datuk Seri Amirudin Shari said the redevelopment cost for the stadium is expected to range between RM780 million and RM800 million.
He noted that the state government is currently evaluating the project’s overall cost and plans to carry out the redevelopment via a public-private partnership deal. This will see the developer shoulder the construction cost, which will be compensated by way of a land swap.
“The land swap deal does not involve the stadium complex area. Instead, the options offered in the deal are located in Klang and Hulu Selangor,” said Amirudin.
He added that the project will include flood mitigation measures, with retention ponds set to be constructed near Giant Shah Alam hypermarket and Stadium Malawati area.
Details of the project will be announced around Hari Raya Aidilfitri.
5. Government urged to revive HOC
Property stakeholders urged the new unity government to revive the house ownership campaign (HOC), saying it is critical to driving property sales.
Under the HOC, first-time buyers are offered full stamp duty exemptions for houses costing up to RM1 million and partial exemptions for those priced from RM1 million to RM2.5 million. Buyers also receive a 10% discount on the property purchase price, reported The New Straits Times.
Datuk Seri FD Iskandar Mansor, Group Managing Director and CEO of Glomac Bhd, also called the government to improve the Malaysia My Second House (MM2H) initiative to attract more foreign investors.
He noted that developers are faced with various challenges, which include rising business costs, increased building material prices, difficulty in securing end-financing for buyers and prolonged approval times.
“How can we make properties more affordable when the process of getting approvals is getting longer? There is a minimum of 22 to 23 agencies involved just to get the approvals,” said FD Iskandar.
6. Malaysia property market to perform strongly in 2023 despite challenges
Deputy Finance Minister II Steven Sim expects the local property market to continue on an upward trend this year even as the country’s economic growth is anticipated to be weaker.
He believes the market would be supported by the implementation of measures under the revised Budget 2023, policies as well as initiatives in the 12th Malaysia Plan, reported The New Straits Times.
The 2022 real estate market report showed that property transaction volume increased 29.5% year-on-year to 389,000 in 2022, while transaction value rose 23.6% year-on-year to RM179 billion.
The residential sub-sector led market activity as it accounted for 62.5% of the total transaction volume. Meanwhile, residential overhang declined 24.7% and 19.2% in terms of volume and value, respectively.
The commercial property segment saw transaction volume increase 46.3% year-on-year in 2022, while transaction value climbed 16.7% year-on-year.
Occupancy rates for hotels also increased to an average of 46.6% from January to September last year, compared with 2021’s 21.8%.
