Jun 23, 2012
Developers: Consumers don’t want low-cost homes
PETALING JAYA: While house buyers are seeking more affordable homes, developers do not want to be bound into building low- and medium-cost homes.
In its memorandum to the Finance Ministry, Real Estate and Housing Developers Association (Rehda) said it wanted to develop affordable homes in line with the increased household income instead of being compelled to build low- and low-medium cost units, which it said consumers did not want.
“Unoccupied and excess low-cost units are a waste of resources. They are cross-subsidised by both developers, through lower profit, and lower tax collected by the Government and buyers of non-low cost units, in additional tax,” said Rehda president Datuk Seri Michael Yam.
“They are either vacant or abused by being rented to foreigners. The hardcore poor group, which is falling in numbers, can be housed in the government-built social housing (PPR).”
He said Rehda had also proposed a lower stamp duty, with buyers of cheaper units paying less.
“The ceiling for higher priced units should be lifted as inflation and higher costs have increased the prices of even affordable homes,” he said, adding that more incentives were needed to encourage faster adoption of the Green agenda.
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