Appeal to Relax Regulations for First-Time Home Buyers

Appeal to Relax Regulations for First-Time Home Buyers

It was recently highlighted that The Real Estate and Housing Developers’ Association (REHDA) appealed to the government to relax regulations for first time house buyers and properties below RM500,000.

REHDA’s President, Datuk Seri Fateh Iskandar Mohamed Mansor said the request includes a lower interest rate and longer loan tenure for transactions in the above two categories and urge the government to be more flexible to end financing issues.

Iskandar commended the federal government for its efforts at helping first time buyers with, among others, the MyHome Scheme which offered RM30,000 in incentives for each affordable housing unit built. However, the allocation is considered insufficient​ now and it is hoped the government will increase it in the upcoming budget.

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Developers Not to be Blamed

It was reported that developers should not be blamed for rising house prices because in actual fact it represents the appreciating land value with residential planning approval.

At PropertyGuru Malaysia Real Estate Summit forum entitled; “The increasing costs of being a developer”, Binastra Land Project Director, Steven Ooi, said that the rising cost is due to two main factors — actual production cost and compliant cost.

Oi added that besides the changes in financing due to the sales and purchase agreement, new regulations such as fire-fighting system, production and foreign labour costs have also added to the cost.

With all these challenges, he said developers should think about cutting cost and introducing quality products via the IBS (industrialised building system) which lowers the cost of production.

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