Post date: Oct 16, 2010 6:29:38 AM
By Racheal Lee of theedgeproperty.com
Friday, 15 October 2010
KUALA LUMPUR: Major property developers in the country said that the Budget 2011 is a business- and people-friendly budget, and added that steps taken to increase house ownership among Malaysians will help spur the property sector and enable more people to own homes.
In the Budget 2011 tabled by Prime Minister Datuk Seri Najib Tun Razak on Friday, Oct 15, the government proposed a stamp duty exemption of 50% on instruments of transfer of a residential property priced below RM350,000 to encourage ownership of the first residential property.
Housing loan maximum eligibility for civil servants may also be raised to RM450,000 from RM360,000 currently.
The proposed Skim Rumah Pertamaku through Cagamas Berhad is also a boost to young housebuyers as it will provide a guarantee on down payment of 10% for houses below RM220,000 for first-time house buyers with household income less than RM3,000 per month.
This would enable house buyers to obtain a 100% loan without having to pay the 10% down payment.
Real Estate and Housing Developers' Association (Rehda) president Datuk Michael Yam, described the incentives as an “excellent move”.
“It sounds good. Most properties in Kuala Lumpur are priced higher than RM350,000 but it is good for other areas like Klang and Shah Alam,” he told theedgeproperty.com.
Mah Sing Group Bhd managing director Tan Sri Leong Hoy Kum said the 50% stamp duty exemption will reduce the cost of purchasing a house by up to RM3,000, and would directly and indirectly benefit housebuyers.
The group, who ranked No.9 in The Edge Top Property Developers Awards 2010, has properties below RM350,000 such as in Bayu Sekamat, Hulu Langat; Garden Plaza, Cyberjaya and Perdana series in Johor Baru.
Datuk Richard Fong, executive vice-chairman of Glomac Bhd said the budget is good for the property market, especially for medium-cost properties.
“It is good for the people who can’t afford to buy a property of that price now and it can help boost the market. The measures make homes more affordable to more people. It also benefits township developers who have medium-cost properties. Our township Bandar Saujana Utama offers terraced homes below RM350,000 so it is good for us,” he noted.
Hua Yang Bhd chief executive Ho Wen Yan said the government recognised that affordable houses are crucial to the market and that all Malaysians should own their own property.
“We expect the property market to be active for the next few years. Also, the government did not impose any restriction to properties above RM350,000, which could indicate that they see the current property market situation as manageable and that the developers and buyers should continue to self-regulate,” he said.
Big projects
The roll-out of big projects like Warisan Merdeka, the Kuala Lumpur International Financial District (KLIFD) and the development of the Malaysian Rubber Board land in Sungai Buloh mean greater opportunities within the property sector.
To that, Ireka Development Management Sdn Bhd COO Lim Ech Chan said these projects need to be timed and planned carefully to ensure that the wider infrastructure is able to support multiple big projects coming on stream.
“The project that we believe most people are looking forward to is the development of the Malaysian Rubber Board land in Sungai Buloh. We hope that the EPF will speed up the project to provide affordable houses to those wishing to live in KL but cannot afford to buy at current prices,” he added.
With an estimated gross development value (GDV) of RM10 billion on the 2,680-acre of Rubber Board Land in Sungai Buloh, Mah Sing's Leong expects the sheer size of the land to make it a prime candidate as the next well planned satellite township after Petaling Jaya.
“We are pleased the mass rapid transit (MRT) has been given the go ahead to commence next year. This is particularly exciting as this would boost demand for properties, especially since 22 of our 30 projects are in Greater KL.
"Public transportation is crucial in helping the nation become more energy efficient by reducing traffic congestion, which in turn saves travelling time, reduces pollution and helps improve productivity.
“Housing demand will increase near MRT stations and general property values will be also be enhanced over time,” Leong noted.
Sunway City Bhd managing director, property development (Malaysia) Ho Hon Sang is heartened that the government is committed to developing green technology to ensure sustainable development.
“As a property developer that is focused on building green buildings, we will continue with our initiatives to develop environmentally friendly and energy-efficient homes, he said.
He added that the Greater KL MRT project, when completed, will help to improve connectivity which will also have a positive impact on the property sector.