Developers pulling back, highlights MDC

PETALING JAYA: The Malaysian Developers Council (MDC) has raised concerns that financing facilities remain a major problem for first-time homebuyers in Malaysia due to a rise in loan rejection rates which has caused Malaysian developers to pull back from their launches.

According to a statement issued by the MDC on Monday, such a scenario may result in shrinkage of supply, which would dampen the property market. The MDC also notes that the government should provide more incentives to help first-time house buyers, and it stands ready to assist the government in the provision of more affordable housing.

In view of the implementation of the goods and services tax, the council requested for properties within the affordable housing category to be accorded zero rating.

It also proposed that residential properties priced up to RM500,000 be considered to fall within the affordable housing category.

The MDC comprises the Real Estate and Housing Developers Association Malaysia (Rehda), Sabah Housing and Real Estate Developers Association (Shareda) and Sarawak Housing and Real Estate Developers Association (Sheda).

The council convened its 20th meeting at Wisma Rehda, Petaling Jaya, last Friday.

This article first appeared in The Edge Financial Daily, on February 13, 2015.