Malaysia Budget 2013 will Address Property Affordability

Budget 2013 will see more measures to control the soaring prices of property, including tighter fiscal policies to curb speculation.

Housing and Local Government Minister Da­tuk Seri Chor Chee Heung said most Ma­­­laysians felt today’s property prices were “far too high” and wanted the Government to see to this.

“When the Prime Minister launched the on­­­­line Budget 2013 interactive platform to gather feedback from the rakyat, he received almost 3,000 suggestions to control house prices,” Chor said at the 15th National Housing and Property Summit.

“To overcome this, and ensure the sustainability of this sector, there is a strong need for better Government policies to ensure reasonable and affordable property prices in the country,” he said.

Chor said last year’s Budget had in it measures to curb speculative activities within the property market such as the review of the real property gains tax and the implementation of a maximum loan-to-value ratio of 70% for third properties.

“However, these measures failed to be fruitful and in moving forward, the Government won’t hesitate to tighten the fiscal policies to curb property speculation and ensure reasonable and affordable property prices.”

Quoting the Household Income and Basic Amenities Survey Report 2009, Chor said 58% of households in the cities earned less than RM4,000 per month including 44.5% earning less than RM2,500.

Chor said the Government was expected to allocate more affordable housing projects such as the People’s Housing Project (PPR) and the 1Malaysia People’s Housing Project in the coming Budget.

He added that the maximum household income of RM2,500 eligibility for PPR houses might be too low nowadays.

“Perhaps the maximum eligible household income for PPR houses can be increased to RM3,000,” he said. – The Star

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