Saturday, October 31

Budget measures needed to address home affordability

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PropertyGuru said despite Malaysia’s property market stabilising this year as consumer sentiments improved and prices showed a gradual uptrend, unaffordability remained at the heart of the matter.

KUALA LUMPUR: PropertyGuru Malaysia, a leading property portal, has recommended several measures to address concerns towards promoting home affordability and ownership for Budget 2018.

In a statement yesterday, PropertyGuru said despite Malaysia’s property market stabilising this year as consumer sentiments improved and prices showed a gradual uptrend, unaffordability remained at the heart of the matter. One of the proposals to update guideline or definition for affordable property, as it should include not just price, but also unit size, location, private sector feedback and other considerations, it said.

“There is a need to have a clear consensus between the government, the private sector and the rakyat on what is perceived as an affordable home,” it said.

It also suggested reverting to gross income to assess loan eligibility as market transactions would increase significantly and almost immediately.

“But it can be restricted to special groups of buyers, for example, first-time homeowners only,” it said.

PropertyGuru also recommended special incentives for homeowners who rented to Malaysians on a longer term basis, citing two- to five-year tenancy agreements for those within a certain age bracket and income level, for instance the M40 Generation, it said. — Bernama