Developers laud guidelines to speed up release of Perak bumiputera lots

IPOH (June 19): A large portion of the "stock overhang" in the state property market are lots allocated under the Bumiputera Lot Quota Regulation, says Perak branch Real Estate And Housing Developers' Association (Rehda) chairman Tony Khoo Boon Chuan.

He said Rehda was currently working with the state government to reduce the amount of the "overhang" in the market.

"Recently, the state government approved good guidelines to help us speed up the bumiputera quota release.

"In assisting us to shorten the process, overhang will be lower," he told reporters at the first day of the Malaysia Property Expo (Mapex) in Ipoh Parade today.

In his speech earlier, state executive councillor, Datuk Dr Mah Hang Soon, who represented Perak Menteri Besar for the event launching, said that last year's "stock overhang" in the property sector comprised 1,055 units worth RM296.38 million, and made up 30% of the sector's overall annual delivery in the state.

He said any "stock overhang" that was left for too long was not healthy for the sector's growth.

"Mapex is one of the efforts to minimise the 'stock overhang'.

"The Perak State Economic Development Corporation (PKNP) has also been roped in to the marketing and sale of bumiputera lots," said Mah.

He added that the property sector contributed to more than 20% of the state's Gross Domestic Product (GDP) growth.

Meanwhile, Mapex Perak organising chairman Tan Chin Yong said now was the best time to buy property due to competitive offers by developers which include absorbing the goods and service tax (GST) or legal fees.

Khoo added that Rehda was also in the midst of appealing to the Ministry of Housing, Urban Wellbeing and Local Government and Ministry of Finance to exclude or reduce the stamp duties on the sale of properties.

"We consider this a double taxation that is a burden to buyers and developers.

"Our national president started the appeal last year, before the implementation of the consumption tax and he is still following up on it," he said.

This year's Mapex is showcasing a total of 6,266 units with a sale value of RM4.5 billion, comprising residential and commercial properties nationwide.

The event starts today from 10am to 10pm and will continue until Sunday.