NHP to ease property market gridlock?

PETALING JAYA (August 4): Developers point the finger at lending policies of banks, banks state that they simply abide by regulations.

Affordable housing initiatives by the government thus far, has failed to meet targets.

The review of the National Housing Policy (NHP), with a revision due by September will shift focus to affordable housing, with a focus on improving quality of life. 

The Edge Malaysia quotes a source, who says that industry players were not consulted on the previous version of the housing policy. 

Housing and Local Government Minister, Zuraida Kamaruddin has said the revised NHP will include improvement, in considerations of design, transit homes for M40 youth, and delivery system enhancements including the adoption of industrialised building systems (IBS) in construction.   

The Edge Malaysia quotes the executive director of Socioeconomic Research Centre (SERC) Lee Heng Guie, who says that the NHP should focus on being inclusive, and ensure lower-middle-income households have the opportunity to own a home. 

He aso suggests a market-driven approach, sans price controls and quotas. 

"The bumiputera quota and special discount ought to be reviewed based on need and income. Unsold bumiputera units that are not released to the open market will only add to the holding cost, and overall cost of development.

"As for discounts to bumiputera buyers regardless of their income, these should be reviewed and be based on the guiding principle of equity. The discounts should only be given for low and medium-priced properties," he said to the Edge.

The Real Estate and Housing Developers' Association (Rehda) said to the Edge via email: "The property sector is plagued by various issues that are hindering its growth. 

"The most notable issue is the lack of supply in locations where it is needed the most, and an abundance of affordable housing in locations that require it the least.

"This mismatch between supply and demand stems from the lack of available data, which is why we support the pledge made by the government to establish a centralised agency to oversee housing issues in the country, particularly affordable housing."

Carmelo Ferlito, Senior Fellow at the Institute of Democracy and Economic Affairs (IDEAS), is quoted by the publication as saying that the government should back out of direct initiatives in the field, saying that the government should leave the market to private initiatives, to avoid competing with the developers. 

Meanwhile developers are of the opinion that the issues that need to be addressed are in removing obstacles for developers, and incentivising affordable housing development. 

Less stringent loan accessibility may also alleviate potential homeowners' woes.