KAJANG: The Valuation and Property Services Department has proposed to set up a committee to monitor the different cost of components which determine the prices of houses.
This is in view of persistent affordability issues and rising overhang which stands at 29,227 units worth RM17.24bil as at June 33, 2018, its director general Nordin Daharom said.
Daharom is offering the department to be part of the committee which, he said, comprises the National Housing Department, Construction Industry Development Board, the Housing and Local Government Ministry and the technical department of the ministry.
“It can also include the Real Estate Housing Developers Association,” Nordin said at a press conference after making known the first half year property market report 2018 on Thursday.
Nordin said the objective is not to control house prices but to monitor the different costs that go into the final prices borne by buyers.
“The department will then be able to determine the minimum and maximum price for a type of housing. The aim is to ensure that house prices remain manageable and affordable for different segments of the population,” Daharom said.
He said the proposal came about because there was not much positive response on the different cost components and developers' profit margins.
He said Melaka has such a committee to establish fair prices and it is proposed that this be adopted at federal level.