PEPS: It should not be a blanket freeze

PETALING JAYA: The Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia (PEPS) is supportive of the government’s decision to freeze approvals for luxury property projects but believes that it should not be a blanket freeze.
“It should not be country wide. The freeze should take into consideration the sector, location and effective demand and supply,” it said in a statement today.
PEPS suggested a one-year moratorium for developers who have submitted their planning applications, during which an in-depth market and feasibility study should be conducted for all projects submitted for approval.
The association was responding to the government’s recent announcement of a freeze on approvals for luxury property projects priced above RM1 million per unit, effective Nov 1, 2017.
On the supply of affordable housing, PEPS said the government should free residential developers from developing such homes as high land cost, which is a key component of any development, would make it difficult for private developers to fulfil such obligations.
It also supports Bank Negara Malaysia’s recommendation to have a single authority to coordinate all affordable housing construction and marketing in Malaysia, which is currently being implemented by too many government agencies.
“Apart from having a single entity, the authority should also carry out market and feasibility studies to ensure effective demand and supply, and most importantly, the right location with proper supporting infrastructure,” it added.
PEPS supports the idea of setting up a National Housing Authority to plan, implement and coordinate all affordable housing projects in Malaysia, and suggested that the entity be entrusted to PR1MA, with all government agencies involved in affordable housing to be merged with PR1MA.
Commenting on the overhang in Greater Kuala Lumpur, PEPS said it is due to developers’ indiscriminate building of properties, lack of market studies and financial feasibility studies being carried out prior to building.
It also attributed the overhang to lack of coordination on planning among local authorities and indiscriminate approvals.
“Other causes include the delay in gazetting of local plans that leads to uncontrolled development and higher cost as well as artificial demand created by members of the public for fear of losing out on choice properties,” it said.