New Property Valuation Long Overdue, Necessary To Keep Essential Services, KPKT To Introduce Build-Then-Sell Option To Reduce Sick Housing Projects And, More
24th October – 30th October
Amidst the widespread dissatisfaction over the assessment rate hikes of up to 100%, the local authorities in Johor defended the new property valuation, saying it was long overdue and necessary to maintaining essential services.
Meanwhile, the Ministry of Local Government Development (KPKT) plans to introduce the build-then-sell (BTS) housing delivery system in a bid to reduce the number of delayed or “sick” housing projects in Malaysia.
1. New property valuation long overdue, necessary to keep essential services
Amidst the widespread dissatisfaction over the assessment rate hikes of up to 100%, the local authorities in Johor defended the new property valuation, saying it was long overdue and necessary to maintaining essential services.
Out of the 16 local councils in Johor, five have conducted property valuation exercises, which lead to adjustments in assessment tax rates, reported The Star.
The Kluang Municipal Council (MPK), Johor Baru City Council (MBJB), Pasir Gudang City Council (MBPG) and Pengerang Municipal Council (MPP) have already sent out notices regarding the rate hikes, while Iskandar Puteri City Council (MBIP) is set to make the announcement.
Johor Baru Mayor Datuk Noorazam Osman acknowledged the concerns of ratepayers, but pointed that areas such as Ulu Tiram and Johor Jaya have not been evaluated for around 15 years, which explains the significant increase in rates.
He shared that the objection period for property owners has been extended, and those objecting are encouraged to provide private estimation of their property for re-evaluation purposes.
He noted that the move was in accordance with law and approved by the Johor state government.
Property owners who cannot afford to pay a lump sum will be allowed to pay monthly instalments until next year, he added.
2. KPKT to introduce build-then-sell option to reduce sick housing projects
The Ministry of Local Government Development (KPKT) plans to introduce the build-then-sell (BTS) housing delivery system in a bid to reduce the number of delayed or “sick” housing projects in Malaysia.
KPKT Minister Nga Kor Ming said the ministry will collaborate with the Real Estate Housing Development Association (REHDA) to address the issue, reported Bernama.
He shared that he would engage with REHDA to establish the new business model incentives, encouraging developers to build and then sell new homes.
Nga believes the move will prevent future abandoned projects as developers could only sell after they have completed the project.
The minister revealed that KPKT’s special task force has revived 256 projects worth RM23.37 billion as of August 2023.
“We managed to save a total of 28,863 buyers and we want to make sure there are no more abandoned projects,” said Nga.
He added that 9,500 affordable homes are on track for completion this year under the 1Malaysia Housing Programme (PR1MA).
To date, 17 of 24 sick housing projects under his supervision have been successfully restored.
3. Over 7,300 homes to be built under ‘SaSAR’
The Ministry of Defence (Mindef) has revealed plans to build over 7,300 housing units, priced from RM150,000, as part of the “One Military Member, One House” (SASaR) programme in Kuala Lumpur.
With a minimum area of 1,000 sq ft, the homes will be constructed on Mindef land, specifically at Wardieburn and Genting Klang Camps. They will be sold at subsidised prices, but will not be offered to the public, reported Bernama.
Notably, 80% of the homes will be set aside for military personnel, 15% to military veterans, and the remaining 5% to Mindef’s civilian staff, said Mindef Minister Datuk Seri Mohamad Hasan.
Aimed at providing military personnel their own homes and ensuring their well-being, the SASar housing project is a partnership between Platinum Victory Development Sdn Bhd and Mindef.
The Wardieburn Camp project will offer 974 homes spanning 1,400 sq m to 1,500 sq m as well as various amenities such as swimming pool, a gym and two parking spaces for each housing unit.
Meanwhile, the Genting Klang project will feature 6,400 homes of 1,000 sq m and 1,200 sq m as well as other basic amenities.
4. Johor MB to look into assessment rate hike for 2024
The state government of Johor will reevaluate the planned increase in residential and commercial assessment rates by five state municipal councils from 2024, amid the current economic circumstances.
“Based on the feedback from various parties, the state government will look into the matter before considering the best prescribed rates,” said Johor Menteri Besar Datuk Onn Hafiz Ghazi, noting that the state is concerned about the people’s welfare.
“This is not to burden any parties during the current challenging economic period as the people are affected from the high cost of living,” he added.
He clarified that assessment rates have remained unchanged since 2013 and cover property taxes on every proportional holding, including vacant lots within the local government zones, as per the Local Government Act 1976 (Act 171), reported Malay Mail.
The state government hopes no party will try to misrepresent or distort the matter.
Notably, five municipalities in Johor are expected to raise residential and commercial assessment rates from 1 January next year.
The move will affect properties in Iskandar Puteri City Council (MBIP), Johor Baru City Council (MBJB), Kluang Municipal Council (MPK), Pengerang Municipal Council (MPP) and Gudang City Council (MBPG).
5. Allow short-term rental accommodation in strata buildings, says Airbnb
Airbnb has recommended allowing short-term rental accommodation (STRA) in all strata buildings under Malaysia’s national STRA guidelines.
It said residents in strata buildings should be able to decide, via a 75% vote through their joint management body (JMB) or management corporation on the conditions relevant to STRA, reported Malay Mail.
It also suggested establishing a national-level online registration portal for STRA operators, providing authorities with data and statistics on STRA activities, fostering effective policy making.
“The creation of an exclusion register for STRA operators and guests who do not comply with an industry-wide Code of Conduct would significantly help reduce noise and nuisance related issues,” said Airbnb.
The company shared industry input and global best practices with PLANMalaysia, which is working on the national STRA guidelines.
If approved, the guidelines will be the first of its kind in Southeast Asia, reflecting Malaysia’s dynamism in embracing innovation and technology, said Mich Goh, Airbnb’s Head of Public Policy for Southeast Asia, India, Hong Kong and Taiwan.
6. Federal Territories to build 80,000 affordable homes by 2028
The Federal Territories Department (JWP), which is responsible for Kuala Lumpur, Putrajaya and Labuan, will introduce comprehensive urban initiatives and infrastructure developments to meet the residents’ evolving needs.
These plans will focus on affordable housing, green spaces, urban renewal and smart technology to ensure balanced and sustainable development, reported The Star.
To ensure that federal territories’ citizens have access to affordable housing, JWP targets to build 80,000 affordable homes by 2028, with 81.5% achieved thus far.
JWP has also embarked on urban renewal efforts, where old flats and strata properties are given a new lease of life via redevelopment, enabling for more affordable home ownership.
Under the ‘Greening Malaysia’ campaign, JWP will plant one million trees across the three federal territories by 2025.
To ensure a balanced and sustainable development, JWP has also made it mandatory for new developers in Kuala Lumpur set aside at least 10% of the project area as open and green space.
In Putrajaya, 30% of the project area are required to be developed as green and recreational space.
Notably, the city is also embracing the use of smart technology, such as smart street lights, IoT networks and CCTV surveillance to improve security and safety of its citizens.
