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. 

Start your ads-free experience now!

Monthly Plan

RM13.90/month

Annual Plan

RM12.33/month

Billed as RM148.00/year

1 month

Free Trial

For new subscribers only


Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!
   

Next In Business News

Magni-Tech 4Q earnings jumps 33.6%
Govt, business sectors need to collaborate to boost competitiveness
Ringgit ends higher versus US dollar, regional peers
IOI Properties get proposal for joint development of Shenton House in Singapore
UWC expands capacities amid semiconductor and EV projects
Keyfield invests RM172mil in two vessels
Gamuda raises annual dividend by 33% to 16 sen, signals bullish growth prospects
TRC Synergy bags RM125mil contract from BHIC
Astro maintains cautious outlook amid economic challenges
FBM KLCI falls for third consecutive session, losing 4.28 points

Others Also Read