The Star reported that the Johor Real Housing Estate and Developers Association (REHDA) want the state government to do away with the 15% discount for Bumiputra properties worth RM1mil and above.
Johor REHDA Branch Chairman Datuk Steve Chong Yoon On said the move should also apply to commercial and industrial properties as the take-up rate by Bumiputra buyers was low.
“Sales transactions from our members showed that there are many Bumiputra buyers who can afford to buy houses worth RM1mil and above,” he told StarBiz. However, Chong said the take-up rate for commercial and industrial properties by Bumiputra buyers was low at between 2% and 3%.
He said the situation had forced developers to hold the units before eventually getting permission from the state government to sell them non-Bumiputra buyers. This sometimes takes up to five years and developers have no choice but to pass the costs to consumers due to the long holding of the unsold Bumiputra units.
Under the guidelines by the state government, developers will be eligible to get a release after nine months or 50% of the project is already completed.
Some 40% of the units in any housing development project in Johor must be set aside for Bumiputra buyers, who are entitled to a 15% discount.
To change the status, the developer will have to pay 7.5% of the initial 15% discount as a premium to the state government.