Budget 2016: Some views of agents

It has been announced that RM200 million has been allocated under Budget 2016 to help first-time buyers pay a deposit on an affordable home. Another RM200 million ha s been allocated to build 10,000 Mesra Rakyat homes, with a RM20,000 subsidy for each unit; RM1.6 billion has been allocated for PR1MA to build 175,000 homes to be sold at 20% below market value.

Erick Kho

President, Malaysian Institute of Estate Agents

The things listed in Budget 2016 were quite underwhelming, especially since there were expectations of boosters from the government to counter the slow property market. It is disappointing that there isn’t more leniency for first-time homebuyers, and matters such as the developer interest bearing scheme (Dibs) and real property gains tax (RPGT) are not addressed.

I do feel that the emphasis on public transport, namely LRT and MRT extension lines, is a good thing for the property market. These are certainly plus points.

Considering the poor market sentiment and the weaker ringgit, the government should have taken the opportunity to bring in more foreign investors. Moving forward, it is up to the government to listen, and engage with the relevant institutions to work out and boost the property market.
 

Patrick Low

Business development director, Real Estate Finders (MY) Sdn Bhd

The budget mostly benefits the lower income group, which is really feasible, especially since current housing prices are at an unaffordable level compared with household income.

“However, the affordable homes must be conveniently reachable by public transport, and close enough to amenities and the workplaces of the majority of applicants. Otherwise, nobody will move into them, due to the unnecessary cost incurred, especially the extra toll and petrol costs.

Public transport plays a very important role in influencing our lifestyles and can encourage people to save on extra expenses like parking, toll, petrol and car maintenance.

The housing developments near to all the MRT and LRT stations, exisiting and planned, will attract more homebuyers and even investors if they are priced in the range of RM 300,000 to RM600,000.

If the government enters into joint ventures with developers, there will be a win-win situation: the developer can save money on land and it is most efficient for government to build affordable homes with an experienced developer.

Desmond Tho

Branch director, Hartamas Real Estate (OUG) Sdn Bhd

As expected, there was no good news to boost the soft real estate market. The only two pieces of ‘good news’ are: the Kuala Lumpur-Singapore High-Speed Rail project will proceed, and the plans to improve public transport; MRT 2 and LRT 3 lines are in works; as are the highways to be constructed as part of the Jalan Tun Razak traffic diversion project.

Construction of the MRT 2 Sungai Buloh - Serdang - Putrajaya line should start next year, as should the RM10 billion LRT 3 line from Bandar Utama, Damansara to Johan Setia, Klang. More than RM1.5 billion has been  allocated for Rapid Bus Transit KL - Klang Project and RM 28 billion is allocated for new MRT projects.

These infrastructure improvements will alleviate traffic congestion. More importantly, homebuyers can get property further from the centre of Klang Valley that is affordably priced and reduce their monthly expenses on transport and parking. From not getting stuck in traffic, they can spend more time with their children and family. This is a long overdue plan which our government should have implemented five years ago.

Then there are the increase in the number of affordable housing by 800 units of affordable homes near MRT stations, 20,000 homes for Felda -- maximum prices down to RM70,000 from RM90,000 previously; [and the housing schemes for Felda, under PR1MA and many others].

From my point of view, the plans are good but what about the implementation? How efficient will it be? Who will build all these homes? The private developers? Are the budgeted allocations sufficient? Or will the developers need to factor in a higher selling price for their other, medium or high-end developments so their buyers subsidise the construction of the affordable housing?

My conclusion is that Budget 2016 is ‘no surprise’. There is no big impact and no good news for the real estate market. (BAJET 2016)