THE Real Estate and Housing Developers’ Association (Rehda) Malaysia has urged the government to address housing issues in Budget 2024.  

Rehda president NK Tong said it is crucial the government look into the unaffordability of homes. 

He said the government could reduce input cost for building materials by temporarily lowering or removing import levies. 

“Other than the cross-subsidy method that developers have to undertake to build affordable housing, another major factor that contributes to the issue is the rising input cost for building materials, which correlates directly with rising house prices,” he said in a statement today. 

He added that government intervention would also address rising land costs that were inflating home prices.  

Tong said reforming state finance is essential when it comes to discussing affordable housing.  

He added that EPF chief strategy officer Nurhisham Hussein had said that 95% of state income was derived from some form of property tax such as land conversion premiums. 

“Therefore reforming state finance is essential when it comes to discussing affordable housing. 

“If charges imposed by state governments and local authorities are reduced, home prices will likely drop and make home ownership more attainable for Malaysians,” he said.  

Rehda also requested for the home ownership campaign to be continued as its previous iterations in 2019 and 2020-2021 had helped thousands of Malaysians afford homes, as well as raised the country’s gross domestic product. 

It also said any incentive in the form of tax deductions, grants, and lower interest rates would lessen the burden of future homeowners, in particular first-time buyers. – September 29, 2023.