KUALA LUMPUR: Real estate developers while lauding 2024 Budget measures for the Bottom 40 (B40) group to own homes say not enough was done to promote industry development.
SP Setia Bhd said, while it appreciates the government's efforts, key areas in the property market such as affordable housing supply, property financing, and rental market regulations were not specifically addressed.
The property developer said these issues need to be considered to create a comprehensive plan for industry development.
"Addressing these issues will contribute to a more vibrant and sustainable property market. "We remain optimistic about the government's commitment and look forward to collaborating with relevant authorities and stakeholders to develop affordable and quality housing," it added.
The Real Estate and Housing Developers' Association (Rehda) expressed concerns over plans to introduce a four per cent flat rate for the stamp duty on memorandum of transfers on purchases by foreign individuals and companies under the 2024 Budget.
President Datuk NK Tong said although the number of foreign ownerships in Malaysia is negligible, this may discourage homeownership and Malaysia My Second Home (MM2H) to those looking to migrate to Malaysia in the future.
Nevertheless, Rehda welcomes the announcement to loosen requirements for the MM2H programme and looks forward to receiving more information about these requirements, with hopes of being included in engagements and discussions pertaining to MM2H.
Tong also added that the association is wary of the decision to increase service tax to eight per cent from six per cent on selected industries and sectors.
"As a player of an industry that is still finding its post-Covid footing and struggling with increased development costs, we fear that this will directly or indirectly impact the livelihood and income of so many stakeholders across so many industries," he said in a statement today.
According to Tong, the various allocations for the B40, including RM546 million towards Program Perumahan Rakyat (PPR) in Johor; RM358 million towards the development of 3,500 residential units under 14 Program Rumah Mesra Rakyat; and RM460 million towards the extremely underprivileged in rural areas to build or repair their homes are much needed, as it will allow more Malaysians to own homes.
He said this speaks volumes of the government's efforts to ensure that no people is left behind when it comes to housing.
"The increase of Housing Credit Guarantee Scheme of up to RM10 billion to benefit 40,000 borrowers is also a much-welcomed news, which we hope will assist to increase homeownership amongst gig economy workers and those without a monthly income statement," he noted. Rehda is cautiously optimistic with the 2024 Budget announcement to reduce the majority consent for en-bloc sale from 100 per cent, to a level consistent with Singapore's, to between 80 and 90 per cent.
He noted that this will better reflect the equity and voice of the people living in strata-titled properties.
"As Rehda and other stakeholders await more details on the announcement, we believe that should this come into fruition, it will lead towards a reformed urban regeneration landscape that will finally see Malaysia on par with other global nations in terms of urban sustainability," he said.
