A GROUP of housing developers in Selangor has claimed that the state government’s move to impose charges for the changing of properties’ status from Bumiputera to non-Bumiputera has forced them to sell units at higher prices, burdening the people.

The group’s representative, Lee Aik Chong, said imposing a 15% charge, based on the value of a unit, for the status change was unfair and disadvantageous, mainly for small- and medium-sized housing developers.

He said a 10% charge was levied to convert unsold Bumiputera-quota houses to non-Bumiputera status, while an additional 5% was charged as a penalty if the unit was sold during the conversion period.

“The charges have been imposed since 2008, and so, we can see that there are no developers building low- or medium-cost houses in Selangor. We cannot bear the charges if the units remain unsold.

“For example, if a unit is being sold for RM1 million, there is a 15% charge of RM150,000. How can we afford to pay? This has forced us to raise the prices of homes. The people, in turn, are burdened, and cannot afford to buy properties,” he said during a press conference in Shah Alam today.

Asked if he had spoken with the state government regarding the matter, Lee, who has more than 40 years’ experience in the housing sector, said it was very difficult to meet the executive councillor concerned or a representative from the Selangor Housing and Property Board.

State Barisan Nasional information chief Dr Mohamad Satim Diman has condemned the state government’s move, which he said made it hard for people to own homes.

He said when Selangor was under BN rule, many low- and medium-cost houses were built to meet the people’s needs, and that changing properties’ status was not allowed in most cases.

“Only units priced at RM500,000 and above could be applied for a status change from Bumiputera to non-Bumiputera, and there were related costs involved. However, the status of other types of houses was not allowed to be changed.

“But now, there are no low-cost houses being built, and all types of houses can have their status changed. The question most developers are asking is, where is the additional charge being channelled to?” – Bernama, January 30, 2018.