Will abolishment of DIBS revive secondary market sale?

Houses at the foot of Gunung Lambak in Kluang, Johor.

KUALA LUMPUR: Budget 2014 has placed a ban on Developer Interest Bearing Scheme (DIBS), a scheme that made its way into Malaysian property market in early 2009. Since its emergence, DIBS has made it convenient for property speculators to invest in new launches. They disregard the hassle of subsale market that has a slightly more complicated payment scheme. However, the recent DIBS abolishment could be the game changer in property market buying trend.

While DIBS is thought to be beneficial by those who genuinely wants to own a home, it also created an opportunity for property speculation. Before this, property speculation was an activity affordable only to those with deep pockets. However, DIBS's easy payment scheme allows speculators to find subsale buyers and sell the property within the construction period or shortly after its completion.