‘Budget 2019 will spur property market’

KUCHING: Sarawak Housing and Real Estate Developers Association (SHEDA) Kuching Branch Chairman Sim Kiang Chiok has expressed confidence that Budget 2019 will spur property market in the country.

“There is this stamp duty exemption for the first RM300,000 on the property transfer letter (surat cara pindah milik) and loan agreement for first time house buyers purchasing a house priced at a maximum of RM500,000 for two years until December 2020,” he said.  

“For the new budget 2019, we also have RM1billion fund to be set up by the Central Bank of Malaysia (BNM) for those earning under RM2,300 per month to buy affordable houses priced at RM150,000 and below,” he said.

Sim added that however, the RM1 billion fund is only sufficient for 6,600 houses for the whole of Malaysia and this is the category where the demand is the highest.

On the RM25 million which will be allocated to Cagamas Berhad to prepare a mortgage guarantee (jaminan pajak gadai), Sim said this will ensure that first time house buyers with a household income of up to RM5,000 will receive a higher financing, he said.

Sim said according to the Napic property report 2017 the overhang of property in Sarawak in 2016 is 570 units and in 2017 is 1358 units showing more than double an increase of unsold properties in Sarawak.

In the first quarter of 2018 there was a slight drop in overhang to 1283 units, according to Sim.
“My personal view of this issue is to understand the core problem which is everybody, if not 99% of house buyers would need a bank loan to buy a house.

“The eco system of most housing developments is the tripartite relationship of the developer, purchaser and the bank. So when the bank doesn’t want to play or lend there will no transaction or houses being bought or sold.

“The bank lending guidelines as controlled by Bank Negara have used the proven income as declared to Income tax as the amount for the basis of lending to the purchaser,” Sim added.

RH Vision Sdn Bhd General Manager Peter Pau has expressed  a positive view towards the Sarawak property market. The developers’ job is to build and sell and many have been doing well despite a slight setback this year, according to Pau.

It is also good that the government has set up certain policies to prevent the property industry from turning sluggish, he said, while urging the State government to come up with policies to draw more investments from overseas.

Those who wish to take part in the scheme “Malaysia, my second Home,” should be welcomed with open arms as this would help boost the nation’s economy, Pau added.

Meanwhile, SHEDA Kuching Branch Manager Angelina Chai said the State Government has done a lot to assist the lower income group to buy a house of their own.

“Housing is one of the basic human needs and with rural to urban migration; the growth rate of housing property has gone up. Sadly, the middle income group is in dire straits.

“They are neither here nor there. The rich can afford a house easily but the middle income earners are finding it hard to buy a house unless they received assistance from their somewhere,” she said.