Property Hunter Magazine Property Hunter Magazine Issue 55 - June 2014 | Page 16

/// East Malaysia Property News Housing Market Plagued by Labour Shortages, Tough Mortgage Rules New ID Tag System to Protect Buyers Curb on Collective Purchase of Property for Easy Profit Sabahan Developers Grab Top Awards in SME 100 Fast Moving Companies Urban Well-being, Housing and Local Government Minister Datuk Abdul Rahman Dahlan The local housing sector is facing labour shortages, particularly for licensed land surveyors, while the central bank’s tough lending guidelines contravene the government’s efforts to promote lowcost homes, according to Malaysian Developers Council (MDC). Represented by REHDA President Datuk Seri Michael Yam Kong Choy, his SHEDA counterpart Zaidi Ahmad and SHAREDA head Francis Goh, the council raised both issues during the 19th MDC meeting at Wisma Kinsabina, Penampang. “Whilst the Government’s objectives and policies to increase affordable housing is to be applauded, the MDC is concerned that the financing facilities for these affordable units are not aligned,” said Goh. With loan rejection rate at worrying levels, members of the three associations have revealed that buyers are facing great difficulty in securing housing loans, especially first-time buyers. Hence, it appears that Bank Negara Malaysia’s stringent mortgage rules that were implemented in 2012 are going against the government’s initiatives on affordable housing. “We understand that the prime intent of BNM for introducing the guideline is to curb household debt, but the government should look at other better mechanisms and qualifying criteria to facilitate first-time buyers,” he noted. 16 www.PropertyHunter.com.my On the lack of skilled workers, the authorities should amend its anti foreign labour measures as the Economic Transformation Programme had significantly increased the demand for manpower in the construction industry. “Unless the government reviews the measures taken against the use of foreign labour, this shortage of human resource would lead to delivery problems and legal implication arising from contractual obligations.” “As such, we appeal to the government to engage the various stakeholders to quickly resolve this serious problem, otherwise projects, development and delivery will be in jeopardy and may even cause labour fees to surge upwards.” In regards to the dearth of licensed land surveyors, the authorities are urged to open up the practice to those from peninsular Malaysia and Sarawak. Board of Valuers, Appraisers and Estate Agents official website A new identification (ID) tag system for genuine real estate agents and negotiators will be implemented this month, said the Board of Valuers, Appraisers and Estate Agents (BOVAEA). The move is in line with efforts to enhance professionalism within the real estate industry, which is valued at over RM100 billion, and protect buyers from being deceived by illegal agents and negotiators. To date, over 50 percent of the property transactions in Malaysia are being handled by illegal agents. According to Foo Gee Jen, honorary secretary of the Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia (PEPS), who is also a board member of BOVAEA, the board receives around 60 complaints per month relating to various misconducts by illegal agents and negotiators. These include misrepresentation of property size, failure to return deposits and miscalculation of assets valuations. In 2012, the value of property transactions within the country reached RM142 billion. Out of that figure, 60 percent was handled by illegal agents, said Foo. He revealed that it will cost BOVAEA over RM1 million to introduce the ID tag, which will include details of the property agent or negotiator, like his or her firm’s name and identification card number. The ID tag will also include a Quick Response code, which will allow buyers to double-check the details online through their smartphones. While the tag is not a licence, there is an annual registration fee of RM100. Applicants are mandated to attend a course and submit their application along with their certificate of attendance. So far, around 16,500 people have attended the course and only 12,000 applied for registration as negotiators, said Foo. The government is to enforce an initiative on May 15 to curb the collective purchase of real estate for subsequent sale at a higher price for easy profit. Urban Well-being, Housing and Local Government Minister Datuk Abdul Rahman Dahlan said the government would enforce the collective purchasers register whereby the developer would have to register the name of buyers of more than four houses at one time with the ministry. He was replying to a question raised by Senator Yunus Kurus on the measures taken to curb the activity by the socalled ‘Real Estate Investors Club’. Abdul Rahman said the enforcement of the regulation was in addition to an earlier initiative of restricting loans to 70% of the purchase price for individuals who had more than two housing loans since 2010. He said the ministry would also co-operate with the relevant authorities to monitor any manipulation of real estate prices. The ministry would collaborate with the police, Bank Negara, the Communications and Multimedia Ministry and the Domestic Trade, Cooperatives and Consumerism Ministry to monitor and prevent the so-called Real Estate Investors Club from influencing real estate prices. Abdul Rahman said the government did not intend to formulate legislation to curb the activities of the club because the country practised free enterprise wher