Developers: Govt needs to step in to solve national housing challenge

PETALING JAYA: It is “too challenging” for private developers to build affordable houses when land price is so expensive and development costs have spiked.

“If the Government wants developers to build more affordable housing, give us cheaper premiums or don’t charge at all.

“We will then see more stability in prices, or even a reduction, if compliance costs, development charges and all sorts of other charges imposed on developers come down,” said Real Estate and Housing Developers’ Association Malaysia (Rehda) president Datuk Seri FD Iskandar Mohamed Mansor.

The national housing issue cropped up once again yesterday when Bank Negara Malaysia issued a statement in response to a media report asking to extend loan repayment tenure from the current 35 years to 40 years.

IJM Land Bhd managing director Edward Chong Sin Kiat gave an example of high costs, saying how developers had to build infrastructure such as water pipes and roads to access their projects.

“About 20 years ago, the Government paid for the water pipes to be pulled into my projects, but now, developers do it ourselves.

“These costs are passed on to consumers. We can reduce housing prices, but utility companies should be asked to absorb these costs,” he said.

Chong described housing loan as being “a good debt as properties will rise in value, but not car or credit card loans.”

He was a participant at the pre-2017 Budget round table discussion organised by StarProperty yesterday.

Another participant, Mah Sing Group Bhd’s chief executive officer Ho Hon Sang, said extending repayment by five years would make it easier for buyers.

“I am mindful of the high household debt to gross domestic product (GDP) at 89%, but steps must be taken to help house buyers, especially first timers,” said Ho.

He called on banks to consider a reducing scale or a tiered lending system to reduce mortgage burden.

The other participants were Ekovest Project Management Sdn Bhd project director (development) Christopher Yeo, Rehda Penang chairman Datuk Toh Chin Leong and Malaysian Institute of Estate Agents president Erick Kho.