- Consequently, this has led to “a number of unintended consequences”, the first of which is the increased number of completed but unsold units, which Tong said is incorrectly labelled as “overhang”.
PETALING JAYA (Nov 28): The Real Estate and Housing Developers’ Association (Rehda) Malaysia has called on the federal government to stipulate an automatic release mechanism to the Bumiputera quota, which will help to resolve various issues plaguing the housing industry now.
“Many developers have fulfilled the necessary requirements of advertising the Bumiputera units for sale over the required number of times for the required period, and sales to Bumiputera are still not forthcoming.
“In cases such as these, the developers should not be punished with further requirements to do so, and there should be an automatic release mechanism for these units to be sold to the general public,” said Rehda Malaysia president NK Tong in a press statement today.
Tong was responding to a recent report that said the Selangor Government would blacklist errant developers who have not complied with Bumiputera quota requirements.
“As land is a state matter, there is no countrywide mechanism to regulate the imposition of Bumiputera quotas and the subsequent automatic release mechanism that would help to maintain a vibrant home buying environment,” Tong said.
Consequently, this has led to “a number of unintended consequences”, the first of which is the increased number of completed but unsold units, which Tong said is incorrectly labelled as “overhang”.
Secondly, it has inadvertently led to an increase of housing prices for all rakyat, including the Bumiputera, “as the holding costs of these unsold units get passed on”, he pointed out.
“And finally, and perhaps the most concerning, is the delayed effect, but real risk, that these unsold units may cause cash flow problems leading to late, sick or abandoned projects,” Tong added.
In the same statement, Rehda Malaysia agrees the authorities should take action against developers which have sold the Bumiputera quota units to non-Bumiputeras prior to obtaining the required state consent.
It also appealed to the state governments not to penalise innocent homebuyers who have unknowingly bought Bumiputera units from such errant developers.
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