Categories
Uncategorized

KPKT looking into blacklisting PPR tenants who defaulted on rental payment

JOHOR BAHRU (July 6): The Housing and Local Government Ministry is looking into blacklisting People’s Housing Project (PPR) tenants, who fail to pay their rents, under the Credit Reporting Agency (CRA) including CTOS.

Minister Zuraida Kamaruddin said the move to study the issue was among matters that would be detailed under the Strata Management Act 757 (Act 757) in the next three months.

She said the Act would enable a management of a strata house to include ‘quit-rent’ and insurance under maintenance fees as well as to enable tenants who did not pay rent for 12 months to be charged interest.

“The Act 757 is already a law but when it is not being enforced, it is not effective.

Categories
Uncategorized

IDEAS: Developers can rent out unsold homes

PETALING JAYA (Oct 30): The Institute for Democracy and Economic Affairs (IDEAS) has suggested to developers that they can try renting out unsold homes since there is a property overhang situation, reported Free Malaysia Today (FMT).

IDEAS economist Carmelo Ferlito (pictured) suggested that “developers could hold on to their unsold properties and wait for the market to pick up again by offering rent-to-own schemes”.

But he also added that “prices are unlikely to drop to the point they fell into the so-called affordable category of RM300,000”, reported the news portal.

“For the unsold stock, probably one solution is for the developers to become landlords, to start renting out the unsold units and at least get some cash flow in,” he said.

Categories
Uncategorized

PUBLIC HOUSING THE SOLUTION TO RISING PROPERTY COSTS

Much has been said about the high cost of buying a property in Malaysia. The question is whether this is happening in Malaysia only or is it a global trend?

Let’s draw a comparison with a few neighbouring countries.

In Jakarta, a fresh graduate earns about 3.5 million rupiah (RM1,000) and a 1,000 sq ft middle class apartment will cost around 2.5 billion rupiah (RM700,000). A fresh graduate in Ho Chi Minh City earns about 5 million dong (RM900) and a 1,000 sq ft apartment price is around RM600,000.

In Kuala Lumpur, fresh graduates earn about RM2,500 while a 1,000 sq ft apartment costs around RM500,000.

If young Malaysians are complaining that the property price is high, they are indeed not wrong if they were to compare it during the baby boomers era when the salary of fresh graduates was RM1,000 and said property price was RM35,000. But looking at the peers from the two comparisons, we are in a better state!

So what went wrong and what do we expect to happen?

Do we expect land price, construction or labour costs to go down?