Redha Kedah/Perlis Govt to reduce compliance cost

ALOR SETAR: The rising house prices over the years could be reduced if the state and federal governments cut the compliance cost, said chairman of the Real Estate and Housing Developers' Association (Rehda) Kedah/Perlis, Datuk Rick Cheng Wooi Seong.

He said the association was aware of the increase in house prices every year but the developers had no choice but to transfer the compliance cost to buyers, considering they needed to pay too many compliance charges.

He also admitted that the high compliance cost was one of the factors that make houses become “unaffordable”.

"Every year, various agencies may increase charges or introduce new charges...this is worrying us," he said when met by Bernama recently.

Based on the association's study, he said the compliance cost in Kedah and Perlis currently was 10%, and this was high for the states.

Cheng said among the compliance costs that needed to be paid under the state government for each housing unit were land subdivision, approval for earthworks, approval for landscaping, cancellation of interest restriction and contribution for road and drainage plan.

Under the federal government, more than 20 charges must be paid, among them, to Tenaga Nasional Bhd, Indah Water Konsortium and Telekom Malaysia.

He said for a house costing RM180,000, the developer must pay a total of RM13,411 in compliance cost for each unit, whereby 3.65% or RM4,648 goes to the state government and 6.88% or RM8,762 to the federal government. – Bernama