Earlier on Monday (28th January), Minister of Housing and Local Government Zuraida Kamaruddin finally unveiled the National Housing Policy 2018-2025. This is the first policy announced by the Pakatan Harapan government and is mainly focused on the bottom 40 per cent income (B40) group.
The minister outlined the policy, which has five core focuses, 16 strategies, and 57 action plans to improve housing facilities across Malaysia. This policy’s five core focuses are;
- Improving accessibility and affordability
- Quality housing for all
- Cohesive neighbourhoods
- Improving coordination between housing development and transportation
- Strengthening institutional relations for the National Housing Policy
Here are some of the highlights from this updated policy and how this is expected to benefit Malaysians interested in owning homes;
1. More focus will be placed on the rent-to-own scheme
According to EdgeProperty, the new National Housing Policy will focus on implementing the rent-to-own (RTO) scheme in an effort to solve Malaysia’s supply and demand mismatch and help low-income earners own homes.
This RTO scheme will allow buyers to rent their homes for the first five years and apply for end-financing to buy their homes in the sixth year. This way, low-income earners can build up their credit scores when paying monthly rent, which can be used as evidence for their credibility to pay for a mortgage.
The Housing and Local Government Minister also stated that the ministry will be looking into the build-then-sell policy this year, which could be another way to address the supply and demand mismatch in Malaysia’s property market.
2. Prices of affordable homes will be capped at RM300,000
“The fixing of prices for affordable houses will depend on location and the local mean income. This will be determined before the project commences… not more than RM300,000 definitely. In Alor Star, the price may differ. In KL, it will also vary.”
On top of that, the ministry also aims to build 1 million new, affordable homes in the next 10 years. She announced that a yearly target of 100,000 houses has been set to enable more people from low-income groups to own homes, according to the New Straits Times.
3. Prices and rent for low-cost homes will be more strictly regulated
Under this new policy, the Housing and Local Government Minister added that rent will be capped at 25 to 30 per cent of household income for residents of low-cost homes and tenancy will be kept at a maximum of 3 years. Rent will also be gradually increased to encourage tenants to buy homes, according to the Malay Mail. This is in an effort to make homes more accessible to low and middle-income groups.
However, it is unclear if this system will be applied to other income groups.
4. Better quality homes will be built for B40 Malaysians
According to The Edge Markets, another big plan the National Housing Policy has in store is that it intends on providing the B40 group with quality affordable housing that are at least 900 square feet priced below RM300,000.
Zuraida stated that the policy provides a clear guideline for developers to build quality homes for the B40 group. Apart from specifying spaces that are at least 900 square feet, the guidelines also include the necessary facilities and infrastructure to be included in these homes.
These guidelines will ensure developers construct good quality homes with good amenities for this group.
What are your thoughts on this updated policy? Let us know in the comments below!
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