PEPS: Budget 2017 lacks measures to revive slowdown in property market

KUALA LUMPUR (Oct 21): The Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia (PEPS) had hoped for more measures to be announced by the government to restore the slowdown in the property market.

Among the measures they had hoped for was to reintroduce the Developer Interest Bearing Scheme (DIBS) for first-time homebuyers, provide incentives for builders and developers to build prefabricated houses, for the Employees Provident Fund (EPF) to allow more funds to be withdrawn under account 2 for first-time homebuyers, as well as incentives to developers who build affordable housing to rent.

Meanwhile, commenting on the release of government land in strategic locations to GLCs and PR1MA to build 30,000 units of affordable homes, PEPS noted that these government lands should be quickly identified and allocated for affordable housing.

“The land should be in urban areas in the Klang Valley and also all the major towns where affordable housing is needed the most,” it said.

“This announcement in the 2017 budget is the first step for the government to provide land for affordable housing,” said PEPS, adding that 30,000 houses is not enough and PEPS advocates more collaboration between the government and the housing developers for the release of more land, especially in urban areas, to build affordable housing.

Commenting on the measure announced to build 10,000 houses for rental to eligible youths, PEPS noted that this will help urban youths who cannot afford to buy a house to rent first.

“In fact, the government should implement the scheme of renting with the option to buy after a few years,” it said.

PEPS also lauded the “step-up” end-financing scheme announcement as it will assist PR1MA buyers to be eligible for the purchase.

budget2017