Budget 2016 enables first-time house buyers to own houses – iProperty

Budget 2016 enables first-time house buyers to own houses - iProperty

KUALA LUMPUR, Oct 27 — Budget 2016 certainly makes it easier for first-time house buyers to own a house, however based on a survey by iProperty.com Malaysia, respondents rated the current affordability of property prices at moderately high.

iProperty Group Chief Executive Officer and Managing Director, Georg Chmiel said respondents had rated the current affordability level of property prices in the country at 7.6 (1.0 being very affordable and 10 being not affordable at all).

He said that Budget 2016 did not introduce any new measures to address this concern but it addressed the issues on affordable housing and better public transportation.

“There were no changes to the real property gains tax, stamp duty as well as more stringent regulations imposed on foreign purchasers wanting to purchase property in the country,” said Chmiel in a statement.

However, he lauded the government for introducing more schemes to meet the rising demand for affordable housing, saying the measures introduced in relation to this would be helpful for first-time buyers looking to get into the property market.

“By selling the properties 20% cheaper under Perbadanan PR1MA Malaysia (PR1MA) will be a great help to first-time house buyers,” he said.

Under Budget 2016, the government announced that it will build 5,000 units of houses under PR1MA and 1Malaysia Civil Servants Housing Programme (PPA1M) in 10 locations in the vicinities of light rail transit and monorail stations, including in Pandan Jaya, Sentul and Titiwangsa.

Chmiel said there is a strong demand for affordable residential properties in major urban centres.

“These are strategic locations and will certainly see first-time house buyers wanting to get their hands on properties in these areas.

“Hopefully, in the near future, the government will look at building more affordable housing in other strategic areas to meet this demand,” he added.

Chmiel urged first-time buyers to submit their applications as soon as it is made available so as not to miss out on the opportunity as there are only 5,000 units.