Better strategy intervention needed to control house prices, says Knight Frank

Better strategy intervention needed to control house prices, says Knight Frank

KUALA LUMPUR, March 17— A well-thought-out strategic intervention policy is needed if the government is to control house prices by reviewing the National Housing Policy, said Knight Frank Malaysia, a global property consultancy firm.

Its Managing Director Sarkunan Subramaniam said priority must be given first to improving people’s incomes.

“People don’t earn enough money even for their first home and their salaries do not increase in tandem with inflation. This is the major correction that needs to be done.

“What we need now is to make the developer contribute to a certain fund for affordable homes or having 30% low-cost allocation of affordable homes within the development project, wherever it may be,” he told Bernama after launching Knight Frank’s The Wealth Report 2016 here on Tuesday.

He was commenting on a statement by Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi on March 3 that the government would intervene to control house prices via the Urban Wellbeing, Housing and Local Government Ministry.

Sarkunan said previously, there was a policy of having 30%  allocation for the low-cost segment in a development project for the development order to be approved.

Earlier, Ahmad Zahid said the intervention of the government is to help control house prices so as to benefit low-income groups.

— BERNAMA

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