KPKT to explore alternative ways to overcome property overhang

Pavither August 28, 2020

KPKT to explore alternative ways to overcome property overhang

The Ministry of Housing and Local Government (KPKT) said it will look for alternative ways to overcome the country’s property overhang situation other than levying a vacancy tax on developers who fail to sell their completed properties.

Minister Zuraida Kamaruddin explained that they have not yet made a decision on the introduction of a vacancy tax, although the proposal was based on data obtained showing that the unsold units in Malaysia are priced at RM500,000 and above.

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“KPKT takes the stand that we will find other methods to prevent developers from building houses that do not meet the people’s needs,” she said at the Dewan Rakyat as quoted by Bernama.

“Before developers begin their construction, KPKT will look at whether there are projects proposed by them that are viable and meet the needs of the people.”

She made the statement in response to Chang Lih Kang’s (PKR-Tanjong Malim) query on the rationale behind the vacancy tax proposal.

“When we have developed a data system, we should be able to get the right projection because then they (developers) would be able to assess by using statistical information to help them plan their construction in future,” added Zuraida.

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