KUALA LUMPUR, 20 September: Valuation and Property Services Department (JPPH) director general Datuk Faizan Abdul Rahman, said allowing developers to provide loans to home buyers will enable more people to own properties, although he was non-committal on the impact of such a measure on house prices.
“Right now, the problem is to get loans, because the condition being imposed (for people being able) to get loan is quite strict,” Faizan told reporters after delivering his welcome speech at the 2016 International Business Valuation Conference (IBVC) here yesterday.
“So if the developers can (also) provide loans, I suppose then more people can afford to buy properties,” he added.
Asked whether the proposed move would affect house prices in the future, Faizan, who is also Business Valuers Association of Malaysia (BVAM) president, declined to comment, saying details on its implementation are still unclear.
“There are mixed views on this matter right now and we think it is quite a sensitive thing. Let them sort out among themselves first and we’ll see how,” he added, noting that the ideal rate for a rise in house prices is between 3% and 5% a year.
Last week, the Urban Wellbeing, Housing and Local Government Ministry said it will review and improve the policy, primarily in terms of effectiveness, in helping the public finance their property purchase, an interest rate and repayment period that will not burden the public, and clear guidelines that can be easily understood by companies with money-lending licences and borrowers.
Commenting on the disparity of valuation results between private valuers and JPPH on residential bungalows along Jalan Gasing in Petaling Jaya, Faizan said it is due to the valuation basis being applied.
“The basis of valuation is very important. In this case, we valued it based on commercial purpose, whereas for the private valuers, maybe they were misinformed, because their valuation was for management purpose,” he said.
TheEdgeProperty.com reported that some bungalow owners are seeking clarity on JPPH’s valuation of their properties, which was far higher than that of the private valuers.
Based on JPPH’s valuation, the land price for the properties was put at RM4,500 per sq m (about RM418 per sq ft), while the private valuer’s was about RM3,300 per sq m (about RM306.70 per sq ft), with a price difference of 26.7%.
Earlier, Faizan said the IBVC aims to expose its participants to the latest global business valuation standards and the prospects for career development in the field and be able to build professional relationships with international valuers.
The one-day conference, organised by BVAM in collaboration with JPPH, involved 15 paper presentations from countries including China, Indonesia, the US, the Philippines and Australia.
Established a year ago, BVAM currently has 39 valuers registered members from the public and the private sectors.
— THE SUN