The Johor Real Housing Estate and Developers Association (REHDA) has called on the state government to scrap the 15 percent discount on bumiputra properties worth RM1 million and above, on the back of low take-up rates, particularly for industrial and commercial properties.
With this, Johor REHDA branch chairman Datuk Steve Chong Yoon wants the proposed move to include industrial and commercial properties, reported The Star.
“Sales transactions from our members showed that there are many bumiputra buyers who can afford to buy houses worth RM1 million and above,” he said.
Take-up rate for industrial and commercial properties by bumiputra buyers, on the hand, was low at just two to three percent – forcing developers to hold the unsold units before seeking permission to sell them to non-bumiputra buyers.
Chong noted that holding the unsold bumiputra units for a long period has hurt developers.
“Developers are left without much choice but to pass the costs to consumers as they would have to bear the financial burdens for holding the unsold bumiputra units.
Based on the state government’s guidelines, developers are eligible for a release after nine months or after 50 percent of the project is completed.
Johor currently requires developers to set aside some 40 percent of the units in any housing project for bumiputra buyers and to give such buyers a 15 percent discount.
To change the units’ status, the developer had to pay 7.5 percent of the initial 15 percent discount as a premium to the Johor government.
Image sourced from Starproperty.my
This article was edited by the editorial team of PropertyGuru. To contact them about this or other stories email editorialteam@propertyguru.com.my
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