LBS Bina Group announces proposals for Budget 2024 to spur local property market

• LBS Bina's second proposal is to provide incentives for the adoption of the industrialised building system (IBS) precast system for developers that incorporate the system into their housing projects, as this can help reduce construction costs and make housing more accessible. 

KUALA LUMPUR (Oct 3): LBS Bina Group Bhd has announced several proposals for Budget 2024 that it deems essential to spur the local property sector in a press statement on Tuesday. 

LBS Bina executive chairman Tan Sri Lim Hock San said, “We are hopeful that Budget 2024 will bring about significant change, and positively influence the sentiment in the property market through the introduction of stimulus packages. This budget presents an opportunity for the government to assist the general public in addressing everyday challenges, particularly related to homeownership.”

In the statement, the group said the property sector had encountered many challenges, including rising interest rates and higher raw material prices. To tackle these challenges, LBS Bina suggested several initiatives. 

The first is the revival of the Home Ownership Campaign (HOC). Amid current inflationary challenges and to ease the financial strain on the public, especially for those aspiring to become first-time homeowners, LBS Bina suggested that the government explore additional measures, including the reinstatement of the HOC. 

The HOC's effectiveness during its previous run from 2019 to 2021 was well documented. Therefore, reintroducing it would stimulate demand, promote homeownership, and expand choices and affordability for prospective buyers, the statement read.

LBS Bina's second proposal is to provide incentives for the adoption of the industrialised building system (IBS) precast system for developers that incorporate the system into their housing projects, as this can help reduce construction costs and make housing more accessible. 

These short-term incentives, the developer added, can pave the way for widespread adoption of the IBS precast system, and help achieve higher construction efficiency, cost-effectiveness, and sustainability. 

LBS Bina also hopes Budget 2024 will have environmental incentives for developers. The developer suggested that the government continue to support and expand green building developments, as well as consider providing grants to encourage industry players to incorporate more green features into their developments, such as the use of renewable energy sources including solar panels. In addition, financing support for green financing with lower interest rates should also be considered.

Aside from that, the developer is also concerned about the expenses related to compliance, such as development charges, land conversion premiums, or strata title application fees, which have been on the rise. Given the current economic climate, LBS Bina requested that the government consider imposing limits or reducing compliance costs associated with property development.

Lastly, the developer nudged the government to promote urban growth through infrastructure development by providing incentives to developers, in order for them to incorporate smart technologies into their projects, such as energy-efficient building systems, smart grids, waste management solutions, and intelligent traffic management systems. 

Lim shared, “We eagerly anticipate the government's commitment to ensuring the availability of adequate, high-quality, and affordable housing options, allowing more people to realise their dream of owning a home. 

“Furthermore, building on our sales target of RM2 billion for 2023, we are optimistic that the government will introduce initiatives that further support our ongoing projects. We are looking forward to witnessing a robust recovery in the property market.”

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