BUDGET 2023: DEVELOPERS WELCOME BIGGER HOUSING ALLOCATION BUT WANT HIGH PRICES OF BUILDING MATERIALS TO BE ADDRESSED

KUALA LUMPUR, Feb 24 (Bernama) -- The government's move to increase the housing credit allocation, via Syarikat Jaminan Kredit Perumahan (SJKP) by up to RM5 billion, would enable more Malaysians to buy a house, said the Real Estate and Housing Developers' Association (Rehda).

Its president Datuk NK Tong said the move is expected to benefit 20,000 borrowers without a fixed income. 

"The approach taken by the government may seem bold and aggressive, but is, in fact, prudent given the concerns of slower global growth for 2023," he said in a statement.

Budget 2023 was tabled at the Dewan Rakyat by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim. 

SJKP's objective is to provide a guarantee on behalf of the government to participating banks which provide home financing to eligible non-fixed income earners such as farmers and petty traders to purchase a house for their own occupation.

Rehda also supported the government’s endeavours to build 12,400 units of low-cost houses under Program Perumahan Rakyat (PPR) and 4,250 Rumah Mesra Rakyat units under Syarikat Perumahan Negara Bhd (SPNB), with allocations worth RM367 million and RM358 million, respectively.

"However, we remain concerned that pressing issues highlighted in our Budget 2023 memorandum, such as the continuous increase of building materials prices are not addressed. 

"We reiterate that should the issue be left idle for too long, it will have an adverse impact on house prices in the open market," said Tong.

In a separate statement, property developer Mah Sing Group Bhd said the government’s move to continue with the exemption of stamp duty for first homes would help buyers to save more.

There is a full stamp duty exemption on properties worth below RM500,000, and 75 per cent of stamp duty for homes between RM500,001 to RM1 million.

"For instance, a 75 per cent exemption on an RM750,000 property purchase will save the buyer up to RM15,000.

"This will pique the interest of middle-to-upper income first-time home buyers, as well as those who are looking to upgrade their property," said its group managing director Tan Sri Leong Hoy Kum.

-- BERNAMA