What are the key proposals for affordable housing in Budget 2019?

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Key Proposals for Affordable Housing in Budget 2019

The period leading up to the Pakatan Harapan government's Budget 2019 saw various proposals put forth by housing associations and unions aimed at addressing the affordability of homes. These suggestions ranged from fiscal measures and developer incentives to loan facilitation and regulatory changes, reflecting a multi-faceted approach to tackling housing challenges for different income groups. The National House Buyers Association (HBA) defined affordable homes as those priced between RM150,000 and RM300,000, with specific requirements for size, bedrooms, and location.
Measures to Curb Speculation and Control Prices

To mitigate rising property prices, the National House Buyers Association (HBA) proposed a tiered approach to stamp duty, suggesting higher rates for buyers acquiring a third property onwards. Additionally, HBA recommended a 30 per cent Real Property Gains Tax (RPGT) for individuals owning more than two properties who sell within the first decade of possession. The association also advocated for a price control mechanism on affordable housing, including a maximum profit margin for developers, drawing parallels to existing price controls on essential goods and construction materials.
Incentives for Developers and Enhanced Supply

Proposals aimed at encouraging developers to focus on affordable housing included fast-tracking project approvals to improve cash flow, and having utility companies bear the costs of last-mile connectivity. The HBA suggested reducing land acquisition expenses by ensuring a significant portion of land allocated is for affordable housing and offering tax exemptions on up to 70 per cent of profits from such projects. The Real Estate and Housing Developers' Association Malaysia (Rehda) proposed increasing the supply of affordable homes by utilizing government land, offering transit housing, and reviewing planning policies.
Facilitating Home Ownership and Financing

To aid potential homeowners, the Malaysian Trades Union Congress (MTUC) suggested that the Employees Provident Fund (EPF) direct RHB Bank and MBSB Bank to offer interest-free housing loans to B40 and M40 workers. Rehda further proposed that banks ease loan approval processes, offer higher financing margins, and provide more flexible loan terms. They also suggested enabling the direct transfer of EPF savings to developers for down payments and increasing the contribution percentage to EPF Account II for this purpose.
Regulatory and Policy Revisions

Several proposals focused on broader policy and regulatory adjustments. Rehda recommended revising the Bumiputera housing discount policy by standardizing quotas and discounts, and prohibiting discounts on high-end properties. They also encouraged the adoption of Industrialised Building System (IBS) through incentives and government project implementation. Furthermore, Rehda suggested lowering legal fees for housing units up to RM500,000 by reverting to an older fee structure and forming a Central Housing Database Agency to manage housing supply and demand data. MTUC also proposed the establishment of a Land and Housing Regulatory Authority to assess and manage housing schemes.

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What are the key proposals for affordable housing in Budget 2019?

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