By FLORENCE A. SAMY
[email protected] | May 13, 2011
PETALING JAYA: The Government is monitoring the spike in house prices and will not hesitate to implement measures to keep them under control, said Housing and Local Government Minister Datuk Chor Chee Heung.
“Our ministry and Bank Negara are constantly monitoring the situation.
“Of course, if it goes beyond a certain point where measures have to be instituted by the Government, then the Government will do it.
“But it may be premature to do it now. Various measures can be implemented like what has been put in place by other countries.
“These include not offering loans for the purchase of a third or fourth house or bringing back the real property gains tax (RPGT),” he said yesterday after launching the Tiger-Sin Chew Chinese Education Charity Concert’s 18th anniversary celebration.
The concert, a collaborative effort between Tiger beer, Sin Chew Daily and Guang Ming Daily, has successfully raised more than RM189mil for 430 Chinese schools nationwide since 1994.
Chor said the build-then-sell concept, where house buyers pay 10% up front and 90% upon delivery, may be re-introduced if necessary.
While prices of residential houses had increased by an average of 17.5% over the last three years, they were still relatively low compared with some cities in the region which registered increases of 40% or more, he added.
“I would not say that the increase of 17.5% is very serious in nature. I admit that houses in the Klang Valley have gone up a lot more; easily 10% more.
“But this is an open market and developers want to make money.
“The increase in building material prices have also contributed to higher prices,” he added.
The My First Home scheme, he said, was one way to enable young adults to purchase comfortable and affordable homes as those earning RM3,000 or less could obtain 100% financing.
He said many developers had come forward to be part of the scheme, and that the Government was now looking for sites to build the homes.
Chor added that the ministry would also continue with the construction of another 38,000 low-cost housing units for those earning up to RM2,500 under the 10th Malaysia Plan.