ministry

Pre-requisite condition for licensing of a housing developer

It is noteworthy that the Housing and Local Government is providing further protection to house buyers against the antics of irresponsible developers. The recent amendments to the Housing Development Act comes to mind. One of the most pertinent clause that was amended is Section 6(1)(b) of the Housing Development (Control & Licensing) Act, 1966. The matter refers to the amendment to the requisite deposit, which is refundable, from the current RM200,000 to 3% of the construction cost. Small developers who build small number of houses in the smaller towns and where total construction cost is RM2mil or less, the RM200,000 that they are currently forking out actually represents over 10%. Therefore, for them the new 3% is actually a vast reduction! To a big project developer whose construct...Read More

Malaysia’s errant developers still not afraid

KUALA LUMPUR, Nov 17 — No amount of new laws against offences committed by property developers will be effective without strict enforcement, said the House Buyers Association (HBA) today. This comes as the Housing and Local Government Ministry moved to propose amendments to the Housing Development Act 1966 to impose stiffer penalties against developers of abandoned housing projects. HBA secretary-general Chang Kim Loong said tougher enforcement of laws was needed to deal with errant developers without which the new laws would remain “ornamental pieces”. “Wayward developers well know that their chances of getting away with their wayward deeds are extremely good,” he said in a statement. He called on the authorities to act against developers “without fear or favour”. He also said that while ...Read More

Malaysian housing developers ignoring freebie guidelines

SOME seven months after more cooling measures were introduced, home prices continue to inch up as developers prefer to offer rebates than price their products lower. Many appear to be not abiding by guidelines on “freebies”. Some banks are also still basing their financing on the sales-and-purchase agreement (SPA) price rather than net selling price, a survey by the national House Buyers Association (HBA) has found. On a more positive note, except for one small developer, the projects surveyed by HBA volunteers did not offer the easy financing developer interest bearing scheme (Dibs), which the government had banned from this year. Brochures and other materials gathered by volunteers at various property fairs, however, indicate that many developers – even the bigger ones ...Read More

Plight of kampung land owners

Where’s the prosecution against the 205 unlicensed housing developers? BUYERS BEWARE BY CHANG KIM LOONG ABOUT two years ago, an English daily highlighted the plight of land owners who had entered into joint ventures with unlicensed developers to build houses on their (home owners’) land. Most of these deals involved land in the kampung (or villages). When these partnerships turned soured and were subsequently highlighted in the press, the Housing Ministry warned it was going to catch these businessmen, most of whom were small-time developers out to make a quick buck. However, until today, no action seems to have been taken on these errant developers while the victims continue in their miseries and financial nightmares due to abandoned projects and botched joint ventures. The Housing Minist...Read More

HBA: Allow EPF to offer home loans to members

PETALING JAYA (June 19): The National House Buyers Association (HBA) is urging the government to allow the Employees’ Provident Fund (EPF) to extend financing for home purchases – particularly of affordable units – to eligible members, reported Free Malaysia Today. Its secretary-general Chang Kim Loong said this proposal would help members who are unable obtain financing without forcing banks to relax their lending guidelines. “Our preliminary thoughts are for EPF to disburse 15 to 20-year loans to a member who has been contributing for at least five years and earning less than RM5,000,” he said. To prevent abuse, the homes will be subjected to a 10-year lock-in period, he added. “At the same time, to ensure the member still has some money for contingencies, the EPF can buy insurance with ...Read More