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PETALING JAYA (Aug 17): Real Estate and Housing Developers’ Association (Rehda) president Datuk NK Tong suggested that banking institutions consider implementing cross-subsidies to help homebuyers own affordable homes.
Speaking at a Rehda 1H2023 media briefing on Thursday (Aug 17), Tong said this may help to address the issue of unsold properties among local developers.
“Just as developers have cross-subsidised affordable housing, perhaps financial institutions can be encouraged to look at cross subsidies to help finance affordable housing or set up a special fund or quota to give home loans to borrowers in lower income categories (B40 group),” he said.
According to a survey by Redha, 53% of property developers have unsold completed residential units as at June 30, with 47% of these completed up to 12 months ago, while 31% were completed more than 36 months ago.
Rehda’s survey of 148 developers found that end-financing loan rejection was the main reason attributed to the unsold residential units.
However, Tong was optimistic that the issue of unsold residential units can be addressed via the government’s Housing Credit Guarantee Scheme (SJKP).
He said the SJKP will further drive homeownership among the people, particularly those in the B40 and M40 categories.
"The enhancement to the SJKP, the introduction of the Madani housing scheme and the announcement by Local Government Minister Nga Kor Ming on the proposed National Housing Fund are some of the efforts that we believe will yield positive results,”
“We look forward to engagements with the government and related industry players so more details on these initiatives can be shared," he added.
Nga announced in late July that his ministry has proposed the establishment of a National Housing Fund to help B40 families buy their first home.
Under the proposal that is currently in the planning stage, the government will provide a 10% down payment for B40 families to buy their first home.