KPKT has requested some leniency from the central bank on housing loan approvals, says Noh Omar
By FARA AISYAH /Pic By MUHD AMIN NAHARUL
The government is evaluating the People’s Housing Programme (PPR) for the M40 group as one of the measures to address the housing affordability issue.
The Urban Wellbeing, Housing and Local Government (KPKT) Minister Tan Sri Noh Omar said that besides the housing needs of the B40 income group, the government is considering how to help the M40 group to own a house.
“The current PPR is only for the B40 income group. But we are discussing and planning to give the M40 a chance to stay in PPR homes.
“Let’s say for example, one PPR unit is sold at RM35,000, while the market value is RM180,000 for the B40 income group. The M40 might be getting a 20% discount instead,” he said at the Affordable Housing Carnival (KPMM)-Malaysia Property Expo (Mapex) in Shah Alam last Friday.
B40 refers to the bottom 40% income group while M40 refers to the middle class group with household incomes of between RM3,860 and RM8,319.
Noh said that despite earning around RM7,000 monthly, the people in this group face end-financing issue to purchase their homes.
He said buyers face either housing loan rejections, or are only offered 80% financing.
The government has allocated RM713 million this year for the PPR projects, higher than last year’s RM424 million allocation.
Up to July this year, KPKT has delivered 118 PPR projects that consist of 83,380 completed units.
Noh said the end-financing and loan rejections are among the main challenges faced by developers and buyers. He said the ministry has been holding discussions with Bank Negara Malaysia to lower the conditions for first-time house buyers.
Noh said he has requested for some leniency from the central bank on housing loan approvals and not to categorise mortgages and hire purchase in the same group.
“When you get a loan to buy a house, the house value will definitely appreciate in five years. However, if you buy a car, the value depreciates in three years.”
“The central bank is looking at our request. However, the decision is theirs,” the minister added.
Noh also launched the Housing Bank Data System (Teduh) at the expo. Teduh acts as a one-stop centre to integrate data from various parties including federal agencies and state governments.
The public could check on the status of ongoing housing projects, as well as availability of housing units under the Bumiputera quota, through the system.