LBS calls for greater measures to boost homeownership within the country

Tan Sri Lim Hock San – LBS Bina Group Managing Director

20 September, PETALING JAYA – Extension of home-buying campaign and property financing tenure, adjustment of Real Estate Profit Gain Tax (RPGT), lowering the threshold for foreign buying of properties, as well as further incentives to encourage wider Industrialised Building System (IBS) adoption, are the five key thrusts on leading township developer, LBS Bina Group Berhad’s (LBS) wish list for Budget 2020.

“Homeownership plays a key role in ensuring the well-being of the nation, both socially and economically.  We at LBS hope the Government will continue to uphold its commitment to ‘house the nation’ by delivering more affordable units,” said LBS Group Managing Director, Tan Sri Lim Hock San.

“In view of the opportunities and challenges facing the local property sector, Budget 2020 presents good opportunity for us to review policies and measures to encourage homeownership, as well as to uplift the property sector, whether its through provision of incentives for potential homebuyers or easing the cost of business for property developers,” Tan Sri Lim explained.

As the ‘People’s Developer’, LBS remains committed to support the government’s housing agenda and suggests five key measures aimed at promoting homeownership for first time homebuyers:

  • Noting that property affordability remains a key challenge for the majority of Malaysian homebuyers, especially those from the lower-income group, LBS proposes that the Government continues the homeownership campaign (HOC) and various financial incentives till 2020. The HOC campaign will enable homebuyers to purchase their dream home at a special rate.
  • To enable easier access to financing options for first time homebuyers, LBS is of the view that the housing loan tenure should be extended from 35 years to a maximum of 40 years, for all property types, and 100% housing loans for young graduates and professionals.
  • To spur growth in the secondary property market, LBS recommends the adjustment of the 5% Real Estate Profit Gain Tax (RPGT) imposed on gains obtained from disposal of property after five years of ownership, stressing it will promote home upgradings and boost property buyers’ confidence.
  • Additionally, LBS hopes the Government will introduce further incentives to promote wider adoption of IBS technology, especially, for township developments. The wider usage of IBS will enable property developers’ fast-track the delivery of quality housing units, while simultaneously reducing the building cost and reliance on unskilled foreign labour, eventually, bringing down house prices.
  • Lastly, LBS proposes lowering the minimum property purchase price for foreign homebuyers to RM700,000 for a limited two years period to help resolve the issue of unsold residential units in the country.

“Affordability, connectivity and community are three important pillars that we believe determine the success of LBS developments. To shape a more sustainable future for the Malaysian property sector LBS will continue to focus on providing more innovatively-designed homes, at affordable prices, to help the Government realise its plan to deliver one million affordable homes in the next 10 years,” concluded Tan Sri Lim.

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