REHDA seeks govt mechanism to release unsold properties for Bumiputeras

KUALA LUMPUR: The Real Estate and Housing Developers' Association of
Malaysia (REHDA) is requesting the government to establish a structured
mechanism for housing developers to automatically release unsold
properties allocated for Bumiputera buyers.
Its president, Datuk Seri Michael K.C. Yam,
said REHDA has never complained about allocating a significant portion
for Bumiputera buyers in each development project as it is part of the
basic principle of local developers but at the moment, the unsold
Bumiputera properties are causing harm to housing developers' cash flow
moving forward.
"We are asking for a very structured mechanism.
Maybe six months after a project receives Certificate of Fitness and
the Bumi allocation is unsold, we can release it to other buyers.
"Sometimes
the Bumi lots are unsold because of lack of demand. If we continue to
hold the units, then it will be a carried burden to the developer,
which will later be passed to the consumers through higher property
prices," he told a media briefing here on Tuesday.
Yam said
unsold Bumiputera units also lead to vandalism and unwanted immoral
activities, with legal implications and a fine for the developer at the
end.
He added that REHDA has submitted the idea to the Ministry of Finance as one of its proposals to be included in the upcoming 2013 Budget.
The annual Budget is scheduled to be tabled in Parlimeant by Prime Minister Datuk Seri Najib Tun Razak on Sept 28.
On
the overall Malaysian property industry, Yam said REHDA feels the
optimism level for the second half of this year remains firm but it is
more cautious for the next 12 months.
He added the recent hike in cement prices and increasing labour cost, especially for skilled labour, continue to drive costs up.
"The loan tightening rule by Bank Negara Malaysia has also left out an increasing number of potential buyers facing difficulties in obtaining loans.
"The
property market is very resilient but the sense of caution is there due
to many negative rumours such as a potential bubble, higher foreign
ownership, and over speculation of prices.
"In reality, there
will be no property bubble in Malaysia. The bubble perception is only
because we are focusing on several hot spots in several states. On
speculation, I do not think that over price speculation is that bad
after all in the industry," Yam said. - Bernama