Three key recommendations to prevent unsold completed homes
The government is urged to regulate the rising prices of affordable housing, provide additional rebates and introduce shared ownership schemes.
SHAH ALAM – The government has been urged to regulate the rising prices of affordable housing, offer additional rebates and introduce shared ownership schemes to better align with the financial capacity of citizens and prevent an oversupply of unsold properties.
Universiti Teknologi Malaysia (UTM) Economics and Real Estate Finance expert Associate Professor Dr Muhammad Najib Razali said that when it comes to rising house prices, people need homes that match their income levels.
However, the high costs being offered do not reflect actual demand.
“This situation contradicts economic theory, where a lack of supply should ideally lead to lower prices, but reality shows otherwise.
“In addition, collaboration between state governments and developers plays a crucial role in reducing land costs, which is a major component in determining house prices.
“This can help stabilise the prices of affordable housing, though it should be limited to affordable homes only. For medium- and high-cost housing, prices should follow market value,” he told Sinar Harian.
Regarding the proposal for additional rebates, Najib suggested that the government should provide these, especially for first-time homebuyers, to ease the financial burden on young people or new families.
He added that this initiative could indirectly stimulate higher demand in the housing market.
“Efforts to build houses should also focus on strategic areas with access to essential amenities such as public transportation, schools, and medical centres.
“Affordable homes located in strategic areas are more attractive and better meet the needs of the people,” he said.
Additionally, he emphasised that the government should introduce a shared ownership scheme to address the financial barriers faced by citizens, particularly those in the middle-income group.
Such a scheme, he stressed, would provide opportunities for individuals who cannot afford to buy homes outright, helping them achieve their dream of homeownership.
