THE Real Estate and Housing Developers’ Association (Rehda) Institute has released a report that puts forward practical and impactful solutions to reduce costs and make housing more affordable.

The report, called “Housing Forward – Understanding Costs and Sustainable Prices”, was conducted to give stakeholders clarity on key issues facing the industry, particularly the impact of compliance costs. 

Rehda Institute chairman Jeffrey Ng Tiong Lip said the report, which was released today, analyses the costs of doing business and how this contributes to the increased overall development costs and prices.

“This research report attempts to look at all the anomalies that we are seeing in the industry, for example, the Bumiputera housing quota and the need for an efficient, transparent and automatic mechanism to release these units into the open market after a period of time.

“The holding cost on unsold Bumiputera quota units can be substantial and unproductive to developers,” Ng told a press conference at the institute’s Regional Housing Conference in Petaling Jaya today. 

Rehda Institute took two years to complete the report using empirical data and members’ feedback, he said. 

“The report requires a mindset change and the political will to achieve the desired outcome of a more efficient delivery system and sustainable house prices,” he said. 

The report comprises three main thrusts, seven focus areas, 21 practical solutions and 14 outcomes, or impacts from recommendations. 

Before imposing any compliance costs on developers, Ng hopes that the authorities would first study and carry out a cost-benefit analysis of such a move. 

“This is because any impact or outcome that requires additional costs that developers cannot absorb will be passed on to buyers,” he explained.

Copies of the report will be shared with the Housing and Local Government Ministry and ministry officials, chief ministers, state excos, mayors, and local authorities. 

Ng said the report could serve as a blueprint for stakeholders to undertake a strategic direction to turn the property industry around. – Bernama, March 24, 2022.