While home builders are looking forward to the Federal Government’s National Housing Policy that will be announced in September, they think more should be done such as easing bank lending rules, reported The Edge.
According to Housing Minister Zuraida Kamaruddin, the main objective of this policy is to help the B40 and M40 groups purchase quality and affordable housing. The former refers to the bottom 40 percent income earners, while the other pertain to the middle 40 percent.
Apart from specifically defining what is meant by low-cost housing, the policy will also enumerate the standards and specifications for upcoming public and private housing programmes.
However, LBS Bina Group managing director Tan Sri Lim Hock San wants the authorities to relax mortgage rules as “many first time homebuyers still find it challenging to meet the strict terms for loan approvals.”
“We believe more flexible-end financing guidelines and additional incentives by the government and Bank Negara Malaysia (BNM) will greatly empower first time homebuyers financially, and bring them closer to realising their dream of owning a home.”
Lim revealed that LBS Bina strives to keep its units affordable through efficient management of construction activities and by using the Industrialised Building System (IBS).
More: A Comprehensive Guide to Affordable Housing in Malaysia
Among the developer’s low-cost residential projects are Skylake Residence in Puchong, Selangor; and Magma Garden at Batu Pahat in Johor. Aside from a Rumah Selangorku project known as BSP Bayuanmas @Bandar Saujana Putra, the company is also involved in Perumahan Penjawat Awam Malaysia (PPAM), a scheme that helps government employees purchase residential properties. Such projects include PPAM Mercu Jalil and PPAM Alam Perdana @Selangor.
“Perhaps the government could consider incentives for township developers, since they generally invest more in the overall planning which includes the strategic layout of houses, infrastructure and accessibility,” Lim added.
Meanwhile, Mah Sing group is upbeat that the new administration will listen to developers and relax mortgage rules.
“We are optimistic about the outcome of the discussions, and any easing of lending rules by the banks or new financial assistance schemes from the government will facilitate home ownership,” said Mah Sing group managing director Tan Sri Leong Hoy Kum.
Recently, the developer has been prioritising the affordable housing segment, with 74 percent of its homes offered for sale in 2018 costing less than RM500,000.
The company’s Reinvent Affordability Campaign in 2017 also provided low-cost dwellings costing under half a million ringgit but these units come with high-end features. These projects consist of Meridin East in Johor and M Vertica in Cheras, which saw healthy demand.
Furthermore, he lauded the government’s move of exempting construction materials from the Sales and Service Tax (SST), and this is estimated to bring down building costs by two percent to five percent.
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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