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iProperty: Budget 2017 Addresses The Rising Demand For Affordable Housing

Last update: 23/10/2016

KUALA LUMPUR, Oct 23 (Bernama) -- At the tabling of Budget 2017 on Friday, Prime Minister Naijb Tun Razak explained that PR1MA has been well-received with more than 12,000 units worth RM3.3 billion booked while 85,000 units are at various stages of approval.

Based on a survey conducted by iProperty.com Malaysia, part of REA Group, respondents said they were hoping to see Budget 2017 provide more affordable housing schemes.

According to REA Group's Chief Operating Officer International, Arthur Charlaftis, the budget introduced a number of measures that addressed the demand for affordable housing.

"We commend the government for listening to Malaysians who have expressed theneed for more affordable housing. The measures introduced in relation to this will behelpful for first time buyers looking to get into the property market," said Charlaftis in a statement.

Meanwhile, REA Group Chief Economist, Nerida Conisbee said Malaysia has a relatively young population and workforce, and there is strong demand for affordable residential properties in major urban centres.

With transport costs also increasing, this young and growing segment of property seekers are looking for property in the cities, often close to their workplace.

The government also announced that the stamp duty exemption would be increased to100 per cent on instruments of transfer and housing loan instruments, to help reduce the cost of first-home ownership, compared to 50 per cent at present.

This exemption is limited to houses with the value of up to RM300,000 for first homeownership only, between January 1, 2017 and December 31, 2018.

Furthermore, under this scheme, the government will look at with building 5,000 units (priced at RM40,000 to RM50,000 each) and will finance RM20,000 with owners paying the rest in instalments.

Houses to be built on owners’ land, land permitted by the land owner and land awarded by state governments.

The other housing schemes introduced include the building of 9,850 houses under the People’s Housing Programme (PPR) and a total of 11,250 PPR houses are being built.

These will be sold from RM35,000 to RM42,000, much lower than the construction cost of RM120,000 to RM160,000 as well as some 5,000 units of People's Friendly Home(PMR) will be built, which the government will subsidise up to RM20,000 per unit.

--BERNAMA