KOTA KINABALU: The Sabah Housing and Real Estate Developers Association (SHAREDA) members have been urged to help the Government in building more affordable properties.
This came from Deputy Chief Minister II cum Local Government and Housing Minister Datuk Seri Dr Joachim Gunsalam who said he know that SHAREDA has and is always going to be concerned with what it consider as mismatch in the industry.
For example, he said, building high end and luxury homes together with low cost houses in the same vicinity may not be agreeable to the developer since many house buyers may want to live in an exclusive community, thus, the property may not sell well.
“I am aware of this problem but the Government also needs your help in building affordable property too.
“We therefore need to meet and discuss a workable mechanism.
“I am ok if you as the industry players need to build luxury properties in an exclusive area so that you can make your money. I am willing to discuss on certain mechanism so that you can’t run away from your responsibility in helping the Government build more affordable houses in a different locality.
“Probably one of the conditions is for you to pay certain percentages of the property values to a Fund, sinking fund or tabung amanah or some form that is yet to be discussed, or as a condition of approving your developer’s licence,” he said, adding he know that SHAREDA has helped in providing affordable houses but is still not enough.
“I don’t have the ststistics with me at this time but I think the industry players have not really done much, if you have then my sincere appology. Please do more. More is needed to address the needs of the B40 and M40 and not just the T20.
Dr Joachim said this when officiating the opening of the SHAREDA PROPEX 2023 themed “Arte of Development: Craft your comfort” at Sabah International Convention Centre (SICC) here today.
According to him, the younger generation has continued to shy away from the real estate industry due to its large upfront capital required to enter the market.
He said coupled with the fact that home loans for first homeowners are generally above 30 years, it is not hard to understand why the younger generation are shying away from owning their own home yet.
“This however does not have to be the case, as the Government has established multiple initiatives to help ease young homeowners to get their very own home.
“There are a number of government initiatives to help the rakyat get their own dream house early. For example since 2019, the Home Ownership Campaign (HOC) which runs till December 31, 2025, will continue to assist first time homebuyers up to RM500,000 in purchase value.
“Beginning June 1, 2022 to 31st December 2023, the Keluarga Malaysia Home Ownership Initiative (i-Miliki) has given first time homebuyers an opportunity to own a home.
“This initiative provides a 100 per cent exemption on the stamp duty for first time buyers for properties under RM500,000 and Properties priced between RM500,001 and RM1,000,000 will have 75 per cent of their stamp duties exempted.
“The Skim Jaminan Kredit Perumhan (SJKP) is again another initiative by the Government, targeted at helping first time homebuyers without a stable income. From April 2023, the Government has even increased the fcoverage of SJKP to include applicants with or without a regular source of income.”
Dr Joachim also encouraged developers to go along with modern times
Traditionally, he said, developments had little or no extra facilities apart from the basic necessity.
It was only since approximately 10 years ago, that gymnasium, swimming pools and security systems were added in a large majority of real estate developments (especially condominiums).
“With the ever-shifting landscape of the real estate development industry, developers will have to keep up with the wants and needs of the general public.
“In the coming years, provisions for electric vehicle (EV) charging bays should be made mandated as the automotive industry is moving towards a more sustainable future.
“Solar panels and power consumption practices should be implemented by developers on a wider scale as the industry is more and more responsive to these changes.
“Real estate developers should consider following the Green Building Index concept in all their development plans and in future the Ministry may make it manddatory pending further studies and discussion with all stakeholders,” he said.
Dr Joachim said even though the economy hasn’t been stable, the real estate development has maintained itself as a pillar of fortitude and strength.
Despite the rising prices of construction materials, the rising costs of labours and costs of living, SHAREDA has continued to innovate and provide the general community with ever changing options from their investment and homeownership journeys.
“With the upwards trends in the tourism industry, we can foresee more businesses for the real estate developers. As such you as developers has to be prepared and meet the challenges ahead.
“May SHAREDA persist to push the industry forward, leading it to greater heights,” he said.
Also present were the Permanent Secretary, Ministry of Local Government And Housing, Datuk Dr Jamili Nais; Deputy Under Secretary (Housing Policy) Housing Planning Division, Ministry of Local Government Development, Malaysia, Rosidawati Abdul Rashid; Political Secretary to the Chief Minister of Sabah, Datuk Dr Roland Chia; SHAREDA President, Datuk Sr Chua Soon Ping;
Director of Lands And Surveys Department, Datuk Sr. Bernard Liew; Organising Chairperson of SHAREDA PropEX 2023 cum Council Member, Joanne Wendy Chung; Heads of State & Federal Government Departments, District Officers, Agencies & GLCs, Presidents And Chairmen of Professional Bodies, Chambers of Commerce, Associations & NGOs,the SHAREDA Council, Past Presidents, Youth & members.
