REHDA backs Nga in opposing limit to home purchase

• “REHDA agrees that introducing such measures can cause a collapse to the housing industry, which will also impact 180 upstream and downstream industries within the ecosystem, and eventually affecting the economy as well.”

KUALA LUMPUR (Nov 4): Real Estate and Housing Developers’ Association (REHDA) Malaysia has come out in support of Minister of Housing and Local Government, Nga Kor Ming in his opposition of suggestions to limit the number of residential units people can purchase.

The association shares his views that Malaysia is a free market economy, and it is detrimental to impose caps on investments made by home purchase.

“REHDA agrees that introducing such measures can cause a collapse to the housing industry, which will also impact 180 upstream and downstream industries within the ecosystem, and eventually affecting the economy as well,” it stated in a media release.

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It added that curtailing property investment will only result in less production of houses whereas the population is still growing. “And when demand exceeds supply, it can lead to increase in prices of homes, as well as rent, and may even cause homelessness,” it said.

“Property purchase are made for other reasons too, besides shelter, hedge against inflation and wealth preservation. There are those who purchase as gifts to family members, such as parents buying a home for their children,” said REHDA president Datuk Ir Ho Hon Sang. (pictured)

“Rather than controlling the number of houses a person can purchase as a way to address housing issues, the government should instead provide more incentives for more houses to be built at the correct locations. In a competitive and well-served market, homes will become competitively priced for the benefit of the population at large,” said Ho.

Ho added that consideration must also be made to Malaysians who cannot afford to purchase a home, and instead rent homes from homeowners.   

“Renters come in all shapes and forms – other than financing issues, there are also people who lead nomadic lives, those who move along with their jobs, and those who simply do not intend to invest in homes and would rather invest or spend elsewhere. For these groups of rakyat, renting is the answer,” Ho explained.

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