To fix the residential property overhang within the affordable price range, the National House Buyers’ Association (HBA) urged developers and authorities to rent out affordably priced homes to low income earners who are in need of a house, reported The Edge.
“There are some houses priced below RM150,000 that are attractive to homebuyers, especially with Bank Negara Malaysia offering special interest rate to low income homebuyers to purchase these homes, but there is not enough information distributed to the public,” said HBA secretary-general Datuk Chang Kim Loong following the launch of the National Housing Policy 2018-2025.
He explained that enough marketing should be done for these affordable homes, such as creating a website where the public can easily access information relevant to property types, location and selling prices.
Meanwhile, Chang said the newly launched National Housing Policy provided some direction on resolving present problems, although implementation and enforcement are vital for its success.
“For instance, the implementation of the build-then-sell (BTS) concept, which HBA has advocated for since 2006, is not in the priority list. The ministry promises to start the research on the concept this year but many studies and discussions have already been done over the years.”
He noted that the present practice of selling properties off the plan sees homebuyers taking on the risk of paying the construction cost, via bank mortgages, throughout the construction process. Hence, buyers are left in the lurch once developers delay or abandon the project.
Image source: The Edge Markets