Solutions To Curb Growing Housing Prices, Likely To Be Revealed In Budget 2013

By Author: Jeevan Nanthan
Total Articles: 3
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The property market in Malaysia is growing at a very rapid pace and there has been a simultaneous increase in prices of properties. In fact, the hype has been so tremendous that the same is inducing negative effect among buyers of property, especially from within the country. Just to tackle this issue and prevent any further increase the government of Malaysia is coming up with new, responsive strategies that can help in curbing the speculative market of property in Malaysia. The other major concern is offering affordable housing to Malaysians. These two issues have also been described as the prime ones which will be addressed in the budget 2013 for Malaysia soon going to be released.

The first step being taken to deal with the rising prices is the hike in the RPGT tax aka real property gains tax and the second one is the stamp duty. Both these are expected to get elevated which means home buyers will now have to pay more when buying new home in real estate malaysia.

Further, the issue of affordable housing will be resolved by addressing the same with plans ...
... like PR1MA or 1Malaysia People's Housing and My First Home schemes. On one hand where the increase in stamp duty will benefit the government in curbing property price while on the second hand this will be surely hurting to first time buyers. The same can however be tackled if the hike in stamp duty is done according to the home price or tiers as set by norm. However, speaking about low cost housing, the same is capped at around RM42,000 while for homes that are slab as affordable, this lies between RM85,000 and RM300,000.

Considering special areas in Malaysia, the property prices are even higher in some property hotspots. The most talked about in this aspect is Penang real estate. Malaysians and even buyers from outside noted that the prices of property is far too high and the government if approached tactfully will not hesitate tightening the financial policies that will help in curbing the speculation while offering affordable housing.

Apart from the measures taken by Government, Rehda or Real Estate and Housing Developers' Association have also proposed some measures that will be declared in budget 2013. These are believed to reduce the business cost for developers that will finally lead to affordable home facility in Malaysia. These measures are speculated to work for the general property market in the country and even the hotspots including penang properties.

Some experts say that the developers need to change their focus from constructing just residential properties to opting for commercial properties. These will include not just shopping complexes buy the high-end properties too. Also, for developers who are involved in making affordable homes must be given incentives by government in the form of low taxes or others which will motivate even more developers to follow their footprints. The final result all expect is to help in checking on the increasing property prices in Malaysia, which if not checked may lead to the same going out of control soon in future.

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The author is an expert in Penang real estate and works with SriShanBid to assist with buying and selling of real estate malaysia . SriShanBid as a leading property company can help anyone in finding their dream penang properties at best possible deals.