News: Property speculation pushes prices up
The government will come up with new measures including curbing rampant speculative activities, in an effort to resolve various issues affecting the property sector, according to the Business Times.
Datuk Seri Chor Chee Heung, Minister for Housing and Local Government is expected to present the findings of a housing industry meeting to the cabinet, in order to help create innovative ways in building affordable homes.
"The government has done fairly well in addressing the housing issues of the lower income. However, 40 percent of the medium-income society still need accommodation," he said, adding that the findings could help improve the sector.
The government will give its recommendations based on proposals from the Real Estate and Housing Developers Association Malaysia (Rehda), such as measures to control speculative property prices, sluggish developments, financing and abandoned projects.
Datuk Eddy Chen Lok Loi, Group Managing Director at Metro Kajang Holdings Bhd, cited an example, wherein a house built in Perlis would only cost RM250,000 but if built in KLCC would amount to RM1 million.
"This is caused by land cost due to two different locations. Nevertheless, there are some of the issues which Rehda will look into to address this such as materials prices. Working groups and a task force have been set up," he said.
Meanwhile, Chang Kim Loong, Secretary General at National House Buyers Association, said developers and the government need to address price increases in the property market brought by false demand and unnecessary speculation driven by low real property gain tax and easy mortgages.
For the latest property news, trends, resources and expert opinions, visit our Property News section. Home buyers, sellers or property renters looking for Malaysian Properties, may like to visit http://www.propertyguru.com.my today.