Selangor To Extend Smart Rental Scheme To Low-Cost Housing, HBA Wants Warranties For Defects Extended To Buyers And More
28th February – 6th March
Selangor is exploring the possibility of extending the state’s Smart Rental Scheme to low-cost housing.
Meanwhile, the National House Buyers Association (HBA) has called for the addition of a new clause to the sale and purchase agreement (SPA) which would allow buyers to inherit warranties given by manufacturers, suppliers and contractors to housing developers.
1. Selangor to extend smart rental scheme to low-cost housing
Selangor is exploring the possibility of extending the state’s Smart Rental Scheme to low-cost housing.
According to Mentri Besar Datuk Seri Amirudin Shari, the programme has been well-received, with 1,000 units allocated and 800 taken up, reported The Star.
The scheme allows middle-income families to rent a housing unit for two to five years, with 30% of the rent returned at the end of the contract to help fund the deposit for a new home.
“The maintenance fee is included in the rental payment, which enables the management to maintain the facilities optimally,” said Amirudin, noting that the programme had a good track record in rental collection as well as in maintenance of facilities.
In fact, rental collection was at around 95% during the COVID-19 pandemic.
2. HBA wants warranties for defects extended to buyers
The National House Buyers Association (HBA) has called for the addition of a new clause to the sale and purchase agreement (SPA) which would allow buyers to inherit warranties given by manufacturers, suppliers and contractors to housing developers.
This would protect home buyers against defects after the two-year defect liability period (DLP) has ended.
“Often, house buyers are left in the lurch after the DLP is over,” said Datuk Chang Kim Loong, HBA’s Honorary Secretary-General, as quoted by The Star.
“I propose that lawmakers impose collateral warranty which is a contract that supplements the primary contract to a third party, that was not included in the initial contract.”
This would ensure that buyers would still be able to benefit from extended warranties provided by specialist contractors, even after the DLP has run out.
Nonetheless, he noted that developers should remain responsible for their obligations to buyers during the duration of the DLP.
3. KPKT, LPNPP to develop new PPR project in Penang
The Ministry of Housing and Local Government (KPKT) and Penang Housing Board (LPNPP) are looking for a suitable location in Penang to develop a new People’s Housing Project (PPR).
In fact, KPKT Deputy Secretary-General (Housing and Community Well-being), Datuk Azhar Ahmad visited the state to view some of the proposed sites and assess their suitability for the project, reported Bernama.
While details of the project are not yet finalised, Prime Minister Datuk Seri Anwar Ibrahim has allocated RM367 million for upcoming PPR projects, which will benefit 12,400 potential new residents. He also set aside RM50 million for the replacement of worn-out lifts at existing PPR flats.
“It is hoped that the state government through the LPNPP will identify the potential location that is ready for development so that this project can be constructed without any obstacles,” said Azhar.
4. Government urged to reconsider stamp duty on property transfers between family members
The National House Buyers Association (HBA) urged the government to reconsider its decision relevant to stamp duty for property transfers between family members.
Under the amended budget, transfers of property between parents and children will be exempt from stamp duty but only for the first RM1 million of the property’s value. The remaining amount of the property’s value will be subject to ad valorem duty, with 50% remission on stamp duty imposed, reported the New Straits Times.
HBA Honorary Secretary-General Datuk Chang Kim Loong shared that the association is disappointed that the proposed incentive of RM10 nominal stamp fee for such transfer had not been considered under the revised Budget 2023.
“The government is placing the priorities all wrong; we want the children to inherit our properties and keep it within the family. So how do we transfer property within our family without having to pay too much? The point is, we want to preserve the property for our children. On paper, there is a gain but there is no actual gain when the property is passed down to the child,” said Chang.
5. Developers see increased property sales in 2H 2023
Close-up Of Businesswoman Calculating Invoice With Stacked Coins And House Models On Desk
Developers are anticipating an uptick in residential property sales in the second half of 2023, with a survey by the Real Estate and Housing Developers’ Association (REHDA) showing that more respondents are optimistic of the property market’s outlook this year.
The survey, which comprised 136 REHDA members, found that 63% of the respondents intend to launch property projects in 1H 2023, reported the New Straits Times.
However, 83% of the respondents believe their sales performance for 1H 2023 would be 50% or lower.
The survey also revealed that 37% of the respondents do not plan to launch property projects in 1H 2023, due to the unfavourable market environment, lack of buyer demand, business constraints and lack of suitable projects/land bank locations.
REHDA Malaysia President Datuk NK Tong believe the property industry would benefit from the new government’s proactive approach in solving critical issues such as labour shortage.
He is hopeful that the government would remain mindful of the various challenges facing developers and homeowners.
6. Government urged to provide incentives to promote use of IBS, BIM
With the Budget 2023 generally neutral for the property sector, Tan Ka Leong, Managing Director at CBRE|WTW, believes the government should have provided more incentives to encourage wider adoption of the Industrialised Building System (IBS) as well as the Building Information Modelling (BIM).
The Construction Industry Development Board (CIDB) has been pushing for the use of IBS for years, saying that it will reduce costs, improve quality, accelerate construction timelines, eliminate the need for foreign manpower, reduce environmental impact and simplify on-site management and safety, reported the New Straits Times.
However, industry players said IBS is a volume game and any form of government assistance would help speed up its adoption.
Aside from helping developers, Tan noted that the use of IBS would also help homeowners receive the keys to their homes in a timely manner.
“Many buyers have other commitments when they acquire real estate. Any delay in a housing project will harm home buyers because they will still have to serve the bank loan while waiting for the project to be completed. Control over construction duration and completion are possible with IBS,” added Tan.
