Datuk Chang Kim Loong of the National House Buyers Association (HBA) argues that the Home Ownership Campaign (HOC) should focus solely on affordable properties priced below RM300,000. He points out that while Malaysia faces a significant overhang of properties, the majority of these unsold units are priced above what the average citizen can afford.
Chang highlights several key points:
1. Affordability Issue: The median property prices in Malaysia are too high for many Malaysians to afford, including middle-income groups. Despite this, there is a significant overhang of properties, indicating a mismatch between what developers are building and what people can actually afford.
2. Overhang Properties Breakdown: Only a small percentage of overhang properties are priced below RM300,000, which aligns with the criteria for affordability set by the Housing and Local Government Ministry. The majority of overhang properties are priced higher, indicating a disconnect between market demand and supply.
3. Revenue Loss for the Government: While the HOC offers incentives to developers to sell their overhang stock, such as stamp duty exemptions, these incentives result in lower tax revenue for the government, especially for properties priced higher. Chang argues that the government is indirectly subsidizing wealthy property buyers through these incentives.
4. Encouraging Affordable Housing: Chang emphasizes the need for the government to encourage the development of more affordable properties by offering incentives to developers in that segment. This would help address the issue of housing affordability for the general population.
5. Extension to Secondary Properties: Chang suggests extending the HOC incentives to the secondary market, which accounts for a significant portion of property transactions. This would help stimulate activity in the secondary market and benefit first-time homebuyers.
In summary, Chang advocates for a more targeted approach to the HOC, focusing on affordable properties and addressing the root causes of the overhang issue. He believes that this approach would be more effective in addressing housing affordability and stimulating the property market.
