May 5, 2011
Malaysia's National House Buyers Association (NHBA) has released a proposal to further regulate bank financing and implement a real property gains tax (RPGT) scale to control the increase in house prices, which it claims is a result of speculative investment in Klang Valley and Penang.
NHBA blamed easy credit and low interest rates for the cause of “unsustainable speculation”, which was further compounded by developers, valuators and banks profiting from the strong demand.
The past four to five years have seen an appreciation of between 40 and 80 percent in various locations, it said.
The association’s recommendations are likely to be resisted by developers who believe that the sharp price increases are localised around Klang Valley and Penang and limited to landed property in a number of suburbs.
It also noted that higher raw material prices and land shortage in these areas, coupled with corporate social obligations placed on them, are some of the reasons why the prices will not come down any time soon.
The non-profit non-government organisation (NGO) NHBA, manned by volunteers, called for a lowering of the loan-to-value ratio (LVR) on mortgages.
The currently LVR has already been revised to 70 percent for third and subsequent housing loans but NHBA is demanding a further reduction of 10 percent.
The RPGT should be reimplemented with a graduated scale, starting at 30 percent over five years instead of the current flat rate of five percent over a five-year financing schedule.
March’s statistics revealed that residential mortgages remained active, growing 13 percent year-on-year to account for the 27 percent of loans.
Taking into account the gap, the government said it will guarantee loans with the new plan to help those earning RM3,000 or less a month to buy homes priced between RM100,000 and RM220,000.
The Real Estate & Housing Developers’ Association (REHDA) was reluctant about the plan, as it will pose a challenge to construction units for less than RM350,000 in the KV and Penang, unless it is smaller and the government allocates more land.
REHDA said properties in Selangor cost less than RM350,000 around Klang, Rawang, Semenyih and Sungei Buloh but demand is non-existent, due to its location from the city.
Land prices vary, with some listed at as little as RM2 psf in Sungei Petani, Kedah to as much as RM2,000 psf in Kuala Lumpur.
NHBA blamed easy credit and low interest rates for the cause of “unsustainable speculation”, which was further compounded by developers, valuators and banks profiting from the strong demand.
The past four to five years have seen an appreciation of between 40 and 80 percent in various locations, it said.
The association’s recommendations are likely to be resisted by developers who believe that the sharp price increases are localised around Klang Valley and Penang and limited to landed property in a number of suburbs.
It also noted that higher raw material prices and land shortage in these areas, coupled with corporate social obligations placed on them, are some of the reasons why the prices will not come down any time soon.
The non-profit non-government organisation (NGO) NHBA, manned by volunteers, called for a lowering of the loan-to-value ratio (LVR) on mortgages.
The currently LVR has already been revised to 70 percent for third and subsequent housing loans but NHBA is demanding a further reduction of 10 percent.
The RPGT should be reimplemented with a graduated scale, starting at 30 percent over five years instead of the current flat rate of five percent over a five-year financing schedule.
March’s statistics revealed that residential mortgages remained active, growing 13 percent year-on-year to account for the 27 percent of loans.
Taking into account the gap, the government said it will guarantee loans with the new plan to help those earning RM3,000 or less a month to buy homes priced between RM100,000 and RM220,000.
The Real Estate & Housing Developers’ Association (REHDA) was reluctant about the plan, as it will pose a challenge to construction units for less than RM350,000 in the KV and Penang, unless it is smaller and the government allocates more land.
REHDA said properties in Selangor cost less than RM350,000 around Klang, Rawang, Semenyih and Sungei Buloh but demand is non-existent, due to its location from the city.
Land prices vary, with some listed at as little as RM2 psf in Sungei Petani, Kedah to as much as RM2,000 psf in Kuala Lumpur.
Source from : http://www.homeguru.com.my/
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