31 October, KUALA LUMPUR – Property developer, Selangor Dredging Berhad (SDB) has proposed that infrastructure cost be shared with utility service providers to reduce the project development cost.
SDB managing director, Teh Lip Kim in a statement said with Budget 2019 to be announced on Nov 2, many were eager to find out the new updates on housing and development.
As a property developer, we are subject to paying various costs to the local councils and various authorities and agencies. All these costs contribute to the development cost of the intended project. One such cost relates to utilities, which the developer has to contribute towards.
For example, depending on the location of the land and its distance to the point where water, electricity or sewerage can be connected or tapped on to, the cost of infrastructure pipes or cables to connect to the utility service are currently wholly borne by the property developer and can be a hefty sum.
SDB also hopes for easier process of applying for Bumiputera quota release. The release process is currently made via an application for approval, after various stages of construction.
More often than not, this approval process takes many months and it would mean that property developers are straddled with units they are not able to sell (until the approval is granted), said Teh.
As such, we need to make the release process more efficient, for instance (when conditions are met), the property developer could submit a release notice after the stipulated stage, rather than an application for approval (which generally requires a longer wait time).
Teh said for foreigners wishing to purchase properties, the property cost threshold is currently set at RM1 million to RM2 million, depending on the state of development.
To encourage more foreign direct investment, the selling price threshold should be lowered. This too would mean there is a more upbeat demand, stimulating both the property sector and market as a whole.