Despite calls from numerous stakeholders on the release of unsold Bumiputera units, Budget 2021 still failed to address the issue on Bumiputera quota as well as the release mechanism for housing projects.
For years, the Housing and Local Government Ministry (KPKT) has been saying that it will seek stakeholders’ feedback on the relevance of such quota, particularly for affordable homes, reported The New Straits Times (NST) citing CBRE | WTW Group Managing Director Foo Gee Jen.
The ministry wants to review such quota and the release mechanism to ensure they are in line with present market needs.
Developers are mandated to reserve a certain portion within their developments to Bumiputera buyers, with the lots to be offered at a discount of 5% to 15%.
Differing from state to state, the Bumiputera quota ranges between 30% and 50%. The State Housing Boards/Land offices also have different release mechanism for the Bumiputera units to non-Bumi buyers.
And while developers had already met all the criteria set forth, the relevant authorities can withhold approval for such units and impose additional conditions.
Developers who sell Bumiputera units to non-Bumi buyers without prior approval from authorities will be subject to fines or twice the levy payment.
With the release of Bumiputera units being a lengthy process, developers have been calling for a more flexible, transparent and time-efficient release mechanism to clear inventories.
This comes as the delay increases developers’ holding cost and dampens their profits. To mitigate the shortfall in earnings, many developers have been raising the selling price for their non-Bumi units.
Meanwhile, Foo said Budget 2021 also had several positive outcomes such as the move to impose no additional taxes for families and businesses.
And while he described the proposals directly affecting the property market as subdued, he noted minor improvements from the incentives released during the previous years.
“Overall, we view the budget as being balanced to assist the Rakyat and businesses through this challenging period while maintaining our options to improve productivity and the economy, through technology and re-skilling and up-skilling of our labour force,” said Foo as quoted by NST.
Foo also wants the full stamp duty exemption for transfer titles as well as loan agreements to be clearly extended to sales within the secondary housing market.
First-time buyers will enjoy full stamp duty exemption for their transfer of title and loan agreements for residential properties priced up to RM500,000 from 1 January next year to 31 December 2025.
“Most purchases will be new units from developers but we hope that this exemption is also applicable to secondary sales,” said Foo.