(From left): National Housing Department DG Jayaselan K Navaratnam, Khazanah Research Institute research director Dr Suraya Ismail, Rehda president Datuk Seri Fateh Iskandar Mohd Mansor, and Eastern Regional Organisation for Planning and Human Settlements secretary-general Norliza Hashim at the KRI-organised public talk "Housing As Habitat: A Case of market failure or institutional limitations?"
KUALA LUMPUR: Private developers have put in a request to the Housing Ministry to extend the time frame for the completion of stratified housing to 48 months from the current 36.
National Housing Department director-general Jayaselan K. Navaratnam confirmed the request was made early this year and Urban Well-being, Housing and Local Government Minister Tan Sri Noh Omar is considering the request.
“The ministry is trying to understand the need and how to design the sale and purchase agreement to be more flexible,” he said. It will not be a “one-way traffic” but will be and on a willing-buyer, willing-seller basis.
“This will take time and the ministry is studying how it is done in Australia and other countries,” he said at the Khazanah Research Institute talk-cum-panel discussion “Housing as habitat: A case of market failure or institutional limitations?”
Real Estate and Housing Developers’ Association’s Datuk Seri Fateh Iskandar Mohd Mansor, who was at the event, said the request to extend the time frame for the construction of stratified properties was made because the buildings were getting taller, going up from 47 to 50 storeys and the plot ratio has increased.
Fateh Iskandar said: “We are getting more urban and there are many conditions with regard to when construction can take place. We can only work from 9am to 6pm, Mondays to Fridays.”
Meanwhile, Jayaselan said house buyers could opt to pay a bigger sum on their housing loans at the initial stage rather than paying at a set progressive rate. The request to lengthen the time frame for the completion of stratified housing will affect the loan repayment tenure, which could mean paying more.
He said the Government has implemented a flexible system and if the buyers could pay immediately, they are allowed to do so. If they cannot, then they could go on the progressive arrangement in which payment could be made according to the completion status of the building.
On the setting up of a single body to regulate the property industry, Jayaselan said the idea was brought up three years ago and “it is still in the pipeline.”
Jayaselan said: “We believe that streamlining (the differences) is the more important (thing). Every government and agency have their own policies with regard to who can buy. Some states have 30% for affordable housing, some 50% and different states have different pricing.
“We have to balance the requirements of each which we are trying to understandthe situation. We are trying to facilitate for the future and we hope to complete it within one-and-a-half years. This is in the plan and under the budget.”
