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BDB Hopes Government Will Expedite Affordable Homes Process

Last update: 18/10/2016

KUALA LUMPUR, Oct 18 (Bernama) -- Kedah- based property developer, Bina Darulaman Bhd (BDB), hopes the government will undertake efforts to expedite the process of delivering affordable homes to the market by providing green lane in approving development submissions in Budget 2017.

Group Managing Director Datuk Izham Yusoff said this could be achieved by reducing the development charges which will then ease pressure on margins.

"Developers should be encouraged to adopt industrialised building system (IBS) in current construction works and tax incentives should also be given to those who adopts this," he said in a statement today.

He said developers providing houses under the first-time home buyers scheme should be given incentives as this move would encourage other developers to do the same.

"These can be in the form of a combination of tax incentives, discounts on development charges and expediting the approval process," he said.

For the Bottom 40 (B40) and Middle 40 (M40) household income categories, he said they should be accorded more flexibility financing in terms of margin, loan-to-value ratio and approval process especially for first-time home buyers.

"Extending the loan tenure from 35 years to 40 years will benefit the market, considering the first-time home buyers' financial capability.

"Increasing the percentage of withdrawal from the Employees Provident Fund to purchase houses or reduce mortgage repayment will help the house buyers to not only reduce their upfront commitment but also their monthly commitment," Izham added.

On Kedah's 2017 property outlook, he said the company's subsidiary, BDB Land Sdn Bhd, would continue to focus on delivering affordable homes for the next five years.

"Some 85 per cent of this will be sold at a price range of RM500,000 and below, and about 1,800 units are houses priced at RM200,000 and below.

"These affordable houses will be able to cater to first-time house buyers aged 25 to 39 years including single and young families, which are in line with the state government's aspiration to provide 40,000 new affordable homes by 2018," he said.

-- BERNAMA