Transcript of Rehda Melaka chairman Datuk Anthony Adam Cho Tian Han’s welcoming speech at the opening ceremony of 1st MAPEX 2016 Opening Ceremony in Mahkota Parade, Melaka on Friday, March 18.

House buyers seeking their dream homes at MAPEX Melaka exhibition.

The Real Estate and Housing Developers’ Association Malaysia Melaka Branch (Rehda Melaka) appreciates the government’s efforts to ensure sufficient affordable housing for the rakyat. The government intervention to develop more affordable housing projects with the private developers has resulted more supply of affordable houses in the market at current point of time.

While we applaud the government initiative, we hope the government will not posed a competition to the private developers because the land cost by the government is definitely cheaper than private ownership. Just to give an example, a JV with the government on RMM is only 15% of the sale value (the number of unit), i.e. house sold at RM150,000 only cost the developer the land value of RM22,500. Private developer who purchased land has to cross subsidy to 20% low cost and 20% RMM will result in an average cost of land between RM40,000 to RM80,000 per house depending on price of land.

Since the government has initiated the RMM project through JV with government agencies, PR1MA, SPNB and PPR Project, it would be good for government to free the responsibility, TEMPORARY by allowing the developers to develop the other sector, through allowing concurrent development to be constructed.

Year 2015 saw further consolidation of market with fewer new projects coming on stream. Based on the Malaysian Investment Development Authority (MIDA) report, the approved investment in Malaysia’s real estate sector down by 70% to RM26.9 billion in 2015 from RM88.6 billion. The substantial drop could have domino effect as the property sector is connected to more than 140 upstream and downstream industries.

Rehda Melaka chairman Datuk Anthony Adam Cho Tian Han

Going forward, the global economy is expected to be more challenging in 2016.
NAPIC report indicated that the total residential property transaction in Melaka for year 2015 as at Q3 is 8,211 and 53.87% of the transaction was the houses priced below RM180k. The output of residential houses in Malacca for start project category was 4,894 for year 2015 as at Q3. Therefore, for every new unit built, there is also one transaction of the completed units by the buyer. These reflect the demand of residential home by the Rakyat. With the decrease in production of houses in Malacca, Rehda is worried that the majority of our Rakyat may not be able to own a roof over their head for them and their family.

While there are talk about price of houses coming down and sales were slow, please be advised that this data are taken from rapid growth area like Klang Valley, Iskandar Region and Penang, smaller state like Malacca, Negeri Sembilan, Pahang and Terengganu, Perak, Kelantan and Perlis or Kedah, continue to see sales to be active especially in the affordable market. The reason being the supply by private developers are always short of the demand especially on the non-Bumiputera market.

Rehda has noted that the rejection rate of the affordable houses market up to RM180,000, the rejection rate by the bank is between 50% to 70%. This does not augur well for this category of buyers especially majority of these buyers are 1sr time house owner and in their prime youth who just started their career and just started out forming new families. We hope Bank Negara will also commercial bank to provide assistant by relaxing the rules for the applicants.

There is no doubt that Rehda always support the government efforts to resolve the affordable housing issues. There is huge demand of the affordable segment. However, government cannot meet the people demand of providing roof on each one head without assistant from private developers. Therefore, if private developers are helping and have been involved, then the large numbers of affordable houses can be constructed.

Therefore, Rehda Melaka hoping for the serious consideration of the State government to relook into the State house selling control mechanism for a win-win solution for the Rakyat, the developers and the state. In order to motivate private developers to build more houses for the rakyat, please allow free market mechanism for the 60% development composition in Melaka.

Datuk Anthony Cho JP delivering his speech during the opening ceremony of 1st MAPEX 2016.

We pledge full support in working with the government in providing affordable housing to the rakyat. We firmly believe that any policy change or impose should be just and fair to all, and should also serve the interests of the majority. We look forward to working closely with the government in the interest of the industry and the benefit of the rakyat.

I am glad that Lembaga Perumahan Melaka and kumpulan PERTAM are also promoting their low cost and affordable houses in this MAPEX road show. Therefore, I urge the public to grab this chance to visit MAPEX and explore the opportunities and own an affordable property at good price for occupation. Now will be the best time for 1st time house buyers to own their drem homes due to the government’s efforts to build more affordable houses for the rakyat.

In oder to assist 1st time house buyers to get their homes, we are hoping that the government will look into easing the stringent lending policy, especially for first-time house buyers by providing 100% financing or special financing package.

Last but definitely not least, once again, a big thank you to Yang Berhormat Datuk Lai Meng CHong who represents YAB Datuk Seri Ir Hj Idris Hj Haron for being with us today. We look forward to continue the good working partnership with YB Datuk, bridging the gap between supply and demand, making quality housing more relevant and affordable to all Malaysians.

On this occasion of 1st MAPEX 2016 Opening Ceremony, on behalf of Rehda Melaka, I thank you all participating members and developers for your support and commitment in MAPEX over the last 16 years which enable our MAPEX continue to be a one-stop showcase for house buyers featuring the latest housing and property developments.
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