There is an urgent need
for transparency in price
discovery
(The lack of transparency is never a good thing)
We are all aware that the property
market has been plagued with opaque
pricing as well as other matters. What
is the best way to rid these unwanted
initiatives?
Chang:
There is a need to have all loans whether
from the primary or the secondary
market, supported by an independent
detailed valuation report, as a check
and balance mechanism. This will ensure
that the bankers lend to houses on the
market value for the property and not on
“fictitious prices” as unilaterally stated
in the sale and purchase agreements.
We need proper market and feasibility
study of new projects before they are
even approved. The financial institutions
should obtain a full market and feasibility
study before they approve any project
and their pricing. When valuations are
made, the false information exacerbates
price discovery which leads to an everspiralling
valuation.
Property investment clubs or property
gurus who are persuading potential
buyers to buy from projects which
they had previously booked and been
assured of substantial commissions
ought to be investigated.
Shouldn’t they be outlawed? There
are sufficient estate agents licensed
and regulated by the government who
can advise any potential buyers on the
properties that they are buying. At least
these estate agents are subject to a
code of ethics and are answerable to
the Board of Valuers, Appraisers, Estate
Agents and Property Managers. The
so-called investment clubs do not and
cannot serve the interest of the buyers
and there is no legal recourse, if the
buyers are cheated.
Penjana and the affordable
housing market?
Housing Minister Zuraida Kamaruddin
last year declared that the official
definition of “affordable housing” must
meet three criteria. Price should be
between RM150,000 and RM300,000
(between rural and urban), built-up must
be conducive for family living and must
have a minimum built-up area of 900
sq ft and have at least three bedrooms,
and its location must be in areas that
are accessible to public transportation
links, public amenities, government
schools, and hospitals.
Surprisingly, there was no mention of
the benefits for affordable housing
in the Penjana economic plan vis-àvis
housing aspect – or perhaps, the
government overlooked it?
Chang’s question here is as good as
ours. We would have imagined some
initiatives for the affordable housing
market amidst the current difficult
times that we are all in at the moment.
However, the Penjana doesn’t seem to
be very beneficial for those who really
need assistance. Let’s hope that Penjana
2.0 will be announced soon to lend
aid to the other side of the spectrum,
especially the secondary market and
the B20 as well as the M40 homebuyers.
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