One way to reduce property speculation?

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A proposed 60 per cent affordable housing policy in Kedah and restrictions to curb speculation could spell good news for ordinary Kedah residents. Never mind that the news has displeased certain quarters who appear more intent on protecting the interests of developers and ‘investors’ (read, speculators).

Locals will be given priority to own property. This could hold lessons for other states (both BN and Pakatan-ruled) as well.

This report from The Star:

Kedah will be the first state to limit the sale of houses to locals if its new housing policy is approved by the PAS-led state government.

Kedah Gerakan Youth chief Tan Keng Liang said that under the policy, only locals would be allowed to buy houses in the Kuala Muda and Kulim districts.

“This means that non-Kedahans will not be allowed to buy houses in these two districts but consideration will only be given to those who stay or work there.

“The land office in Kuala Muda and Kulim will also closely monitor the land title transfer of the houses with priority given to Kedahans,” he said at a press conference on Wednesday.

Tan said the new policy would “kill” the property development business in the state, adding that it would also give investors a negative perception.

“This is the third issue arising from the new policy. Developers are also required to allocate up to 60% of a housing project for affordable homes while the state government will control the price of houses,” he said.

Kedah Mentri Besar Datuk Seri Azizan Abdul Razak, when met after chairing the state executive council meeting, said the state executive council had yet to discuss the new policy.

“It is only being discussed at the housing committee level now. The state wishes to amend the housing policy so that locals will be given priority to own property.

“We do not want Kedah to become a state where the houses are owned by outsiders while the locals still live in dilapidated homes or are homeless,” he said.

The MCA chaps too have criticised the move to increase the quota of affordable housing from 30 per cent to 60 per cent. Imagine that! Whose interests are they more concerned about?

This excerpt from Bernama:

Chor said when Barisan Nasional ruled Kedah, it implemented a similar housing policy but the quota was only 30 percent.

“If the Kedah government increases the affordable home quota to 60 percent, developers will increase the price as they can’t make much profit compared to high cost homes.”

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钝郎
钝郎
12 Jul 2012 10.40am

The Star Property Fair at Gurney & G Hotel now till weekend.
Wong Chun Wai to appear to talk about properties endorsed by The Star – landslide safe and affordable to the public ???

Brownie
Brownie
12 Jul 2012 11.19am
Reply to  钝郎

I suppose GK an TL (macam adik-beradik) can go to this Mah Sing Roadshow to get the goodie bag, then proceed to nearby MPPP food court for pasembur & kopi kau kau while going through the housing brochures!

tunglang
tunglang
13 Jul 2012 6.30am
Reply to  Brownie

We, as humanity of intelligence & reasoning should live as adik beradik no matter what difference (political, culture, social) stands in our way. It is the delirium sycophants that thrives on unfound fear, division & enmity for his/her dubious purpose. No different from ApaNama Legacy of the divide & rule & waste. With this kind of perverted mentality, Boleh kah Malaysia Selamat, Maju & Jaya? Pikirkan lah Dahulu, Bukan Makan & Tidur Hero Biro. sycophant: a person who acts obsequiously toward someone in order to gain advantage; a servile flatterer. Plus: a no brainer void of individual thinking & reasoning… Read more »

顿狼
顿狼
15 Jul 2012 3.04pm
Reply to  tunglang

You have just added another adjective to describe Dr Umum – sychophant. No wonder now we do not have Esso but Petron.

tunglang,
drink San Miguel (bir halal kau kau without ice) and you will be enlightened by the truth.

tunglang
tunglang
15 Jul 2012 11.43pm
Reply to  顿狼

That’s Barang Naiki business, not in the mood to discuss this moment. I will leave that to my pleasure for another day’s topic. So don’t put a blanket accusation that Tunglang is pro BN. You are just being typical naive sycophant. With your kind of juvenile blog politicking, you get easily ‘slaughtered’. Grow up ‘man’ or lass!!! As for Esso owned by Chinese businessmen, yes I have witnessed with my own ears how they were treated with strict inspections to make life difficult as petrol station owners. We have to change this unfair deal. Now, I don’t feel the need… Read more »

sunnyooi
sunnyooi
9 Jul 2012 11.36pm

Many are quick to point fingers at developers and speculators. Its a fair trade in my opinion. If there is no buyers then let these people lose money.

I have yet to see a Communist system bring growth and prosperity to its people.

tunglang
tunglang
10 Jul 2012 9.12am
Reply to  Anil Netto

No difference from Barang Naiki thinking – remember the ex-IGP’s phobia of the Reds among Bersih while convalescent (till now) in Genting suite after a scare-fare in the jungles of Malaya?

sunnyooi
sunnyooi
10 Jul 2012 4.35pm
Reply to  Anil Netto

wealth_sharing = socialism
wealth_sharing – democracy = communism
socialism + fake_democracy = communism

Kevin
Kevin
10 Jul 2012 1.01am
Reply to  sunnyooi

Socialism shouldn’t be equated to communism. Everyone should enjoy the fruits of their labour but a good govt, if able to, should use its resources to help its ppl (deserving cases) maintain a certain quality of life. I think everyone knows I admire Sg’s efficiency, low-corruption, education and public housing but I must admit socialism and the people’s welfare are almost non-existent there. It bothers me to see this very old hunched-back lady walking around all day along Orchard Road selling packets of tissue paper. I admire her because despite her age she works very hard and does what she… Read more »

tunglang
tunglang
10 Jul 2012 9.26am
Reply to  Kevin

The old, the infirmed, the hadicapped, the poor, the ugly – these are shunned by majority in Cosmopolitan societies for a front facade of wealthy display of feel good Bing Chui. This is cruel truth the followers/wannabes of materialism-me-first will not admit at 2 cents value. No wonder we are still seeing many old folks rendered to the homes because their children fidelity falls on individualistic lifestyle convenience of the richie & famous. Even to pay quite a sum these days from Rm 800 -1K above for this pursuit of individualistic happiness of self. Chinese New Year, Hari Raya &… Read more »

kee
kee
10 Jul 2012 3.30pm
Reply to  Kevin

Kevin, i suppose everyone has a roof over their heads in Sg Land. Am i not right? Or terribly naive ??? Or could it be this old lady had been thrown out by her children? Sometimes we must not be too quick to jump to conclusion as i was told an Indian man, he looked so poor and dishevelled but one day he turned to my friend’s dad and asked for a piece of land to be sold to him. Kevin, i was just wondering did you bother to buy a packet of tissue from the old lady? Please allow… Read more »

tunglang
tunglang
10 Jul 2012 8.02pm
Reply to  kee

Kee, you are giving back to God, don’t you know?
Each of us is created by Him. When we care for someone, it reflects our care for His creation. And that too is giving our respect & love back to Him.
Hope many more will follow your example.

Kevin
Kevin
10 Jul 2012 10.29pm
Reply to  kee

Yes we must all do what we can to help those in need. There will always be unfortunate ppl and that should be encouraged on a personal capacity. What I was stressing is that the govt as the trustee of our nation’s wealth should formulate policies to help those who require and who deserve help especially if the country is ultra-wealthy and can afford it. Their policies impact the rakyat the most, more than what you and I can do individually. It is much better than spending it on tall towers, high-tech highly inflated war equipment etc. I was stressing… Read more »

tunglang
tunglang
11 Jul 2012 5.45am
Reply to  Kevin

The one question I want to ask the self-absorbed :
How much you want/can/desire to enjoy life’s luxuries until you die while there are others who suffer on a daily basis?
Even in communist countries, there is food to eat during a crisis.
I can still remember during 513, the beggars were left to fend for themselves in the streets during curfew. Put yourself in their shoes to feel the fear, uncertainty, hunger & danger.

Brownie
Brownie
12 Jul 2012 11.16am
Reply to  tunglang

The Sunday crowd at City Harvest Church in Singapore should get such sermon from you.

tunglang
tunglang
13 Jul 2012 6.16am
Reply to  tunglang

Brownie, go seek the Taliban brain of reasoning. Good for your spiritual ill-health of self righteousness & closed mind. Btw, Singapore is not a land of absolute Stephen Hawking’s closed mind of self absorbed but spiritual emptiness of his brand of dark Universe of flying rocks, gases & solitude.

Sze Tho
Sze Tho
10 Jul 2012 2.34pm
Reply to  sunnyooi

To regulate is one thing, but the devil is in the details. How best to do it? And what are the wider repercussions? If there is an unfulfilled demand for affordable housing in Kedah, and IF there is unbridled speculation in properties there, measures should be taken. Now, by imposing a higher quota of 60%, means the profit margin for that 60% will be lesser. What would be the reaction / backlash from the developers? – even higher prices for the remaining 40% to make up the shortfall? – lower quality, to cut the production costs for the 60%? –… Read more »

Gerakan K
Gerakan K
9 Jul 2012 10.13pm

First of all, check the local demand % first. If current 30% quota is more than enough, then raise it to 60% definitely will hurt developers interests in that state.

kee
kee
10 Jul 2012 2.35pm
Reply to  Gerakan K

Gelak, for once you talk decently !!! Keep up !!!

moo_t
moo_t
9 Jul 2012 4.18pm

Now PAS is just use the typical authoritarian way of feel good “solution”, which will never solve the problem, nor it will help increase the housing supplies. Quota, limit, etc WILL NEVER tackle the root of the problem. In real world, when “speculation” is high, it will trigger the supplies chains, UNLESS authority purposely curb the supplies chain or monopoly exist. OTH, restricted economy and bad government policies also plays a huge role pushing money into housing estate. If jibjib keep inflate the money, continue the bogus “transformation”, but curb the free economy to let cronies ripped the profits, people… Read more »

Kevin
Kevin
9 Jul 2012 9.01pm
Reply to  moo_t

What you say is true only if developers are fair and make reasonable profits. Right now they are not. The top 10% of society will keep hoarding and buying properties, raising prices. The bottom 90% suffers more and more. A government of the people must protect everyone. Let developers profit, but profit reasonably, have a conscience towards the needs of the poor. Let the top 10% enjoy what they have earned through hard work or talent but don’t deny the bottom 90% a comfortable life. Many are qualified, they work very hard but still do not make enough. We have… Read more »

tunglang
tunglang
9 Jul 2012 9.30pm
Reply to  Kevin

Kevin, you are very thoughtful.
If only our leadership has it, developers care to build what is within reach of many, & speculators realise the consequence of their ways will affect not only a large segment of society, but also the economic stability intertwined with wealth distribution & spending.
Aren’t we all humans, not guinea pigs or suckers!

kee
kee
10 Jul 2012 2.33pm
Reply to  tunglang

How i wish things will be fair in this world !!!

However, things are not what they should be.

Sometimes i find comfort and solace in the next Kingdom !!!

tunglang
tunglang
10 Jul 2012 4.35pm
Reply to  kee

Soon, kee. The coming 1000 years of righteous rule, fairness, equality & neighborly love. People will not covet for more than their fair share, will not be easily corrupted, will work with a purpose & use their given innate talents to the full. The earth will also be rehabilitated by spiritual forces unseen since the first days of Eden’s creation. The land will expand into the sea space so that mankind will have more natural land space to live in landed houses, not chicken coops of high rises. Agro culture will make a comeback, hitech will be rendered insignificant since… Read more »

Brownie
Brownie
12 Jul 2012 11.13am
Reply to  tunglang

Yes, you can go to Singaland to seek solace from Pastor Kong of City Harvest – there is always a blessed way to build up your building fund!

tunglang
tunglang
13 Jul 2012 6.02am
Reply to  tunglang

Brownie, don’t simply fault any religion. Judge not a man’s action who is not perfect. Otherwise, you are no better than the Talibans.

moo_t
moo_t
10 Jul 2012 3.08pm
Reply to  Kevin

Some may argue that land ownership is lock for particular developer and you cannot create competition for same piece of land. If you read my comment thoroughly, I don’t think you will miss the point made. Think again, what make a “premium land” so exclusive? It is the facilities, accessibility and many other incentive that make people willing to pay, or even attract speculator to take the risk. Perhaps some still remember how people speculate about Rawang getting an airport (And how the people speculate that land around noisy airport are premium really beyond my logical thinking. ) . There… Read more »

leekh
leekh
9 Jul 2012 12.44pm

Another way to reduce speculation (quick profits) is to prevent resale, transfer of property withing a period of 6 years. Taxing the profit is not good as they can easily under declare the sale price. Speculators do not like to wait. This might appear to reduce demand for houses. It really means that “real” demand” will emerge. Most of the demand today is for speculation.

Yang
Yang
9 Jul 2012 2.52pm
Reply to  Anil Netto

Its not as rosy as you think. You must remember that even without government intervention houses are already cheap in Kedah as land there are dirt cheap. Even then those cheap house are normally built in the ulu where most people would not normally want to live and where development are slow without the usual modern infrastructure.. One should not compare Penang or KL with the ulu areas. Housing may be more expensive in urban area like Penang and KL but they have value compared with the ulu. Trying to control the housing too much may leads to development else… Read more »

alex ooi/teh pc family
alex ooi/teh pc family
11 Jul 2012 7.21pm
Reply to  Yang

Our family feels that CM LGE & HIS TEAM can be trusted to made good decision for Pg & M’sia for the present. We must contribute positively and check wrong action by anybody. After a few years in central government only can we judge the any Pakatan Raayat Government, federal or state.

Yang
Yang
9 Jul 2012 5.51pm
Reply to  leekh

Preventing resale may not be such a good idea. Without resale it may create a market of more buyers and less sellers thus making it a buyer market with buyers chasing the properties. That will definitely increase the price of houses.

tunglang
tunglang
9 Jul 2012 6.29pm
Reply to  leekh

Property Speculation – a reality sucks.
Who would want to be suckers in this surreal property chase?
Wildebeests can’t think, much less turn away in the mad rush of stampede!

nahraf
nahraf
9 Jul 2012 12.40pm

Rising house prices is purely speculation, plus inflation, but inflation is just a small factor, demand for houses is very high, speculators buys and hold property for a short while for profits, and driving the prices higher and higher till it become out of reach to the majority of people.

I think what the Kedah government is doing is smart, by upping the quota to 60 percent, it will give access to the majority who really need houses and effectively curbing speculation.

Ong Goo Kang
Ong Goo Kang
9 Jul 2012 12.35pm

tunglang can try Sungai Petani, it is still not tainted with rapid development. There are plenty of ori-maestros there. he could report from there on anil blogs on good hawker food of SP.

tunglang
tunglang
9 Jul 2012 9.21pm
Reply to  Ong Goo Kang

I would love to go there; old memories will flash back – The Royal Tea Garden Party.

bigjoe
bigjoe
9 Jul 2012 12.01pm

All it shows actually Kedah govt is messed up. The incompetence is real.

The rising house prices even if its a bubble merely is just exaggerating a deeper economic flaw – its actually one of income and competitiveness. Kedah need a bigger strategy and a lot of execution. Honestly it need to bring in outside help. They just don’t have what it takes. The smart thing for Kedah to do is to ask its other PR partner states to advise and help..

Kevin
Kevin
9 Jul 2012 4.16pm
Reply to  bigjoe

Big Joe, if you visit Kedah often I think you would see a vast improvement under the current PR gov. The roads are cleaner and public infrastructure is well-maintained. And we have to consider that Kedah is not a rich state like Pg. Their average income is probably half of Pg’s and based on what they have I have to say they have done quite well. When the PR gov took over, they reduced assessment rates by half overnight and their gov still manages to function. Regarding their proposal of 60% affordable housing, I feel it is a good move.… Read more »

Ahmad Sobri
Ahmad Sobri
9 Jul 2012 11.52am

PAS leads the way! DAP masih takut lagi! This is a sure way to bring down the prices or at least stabilizes it. The developers and speculators had had their days. The soft launch, pre launch, official launch will see 3 price increases. DAP should follow suit and implement it in Penang. It will surely bring reliefs to lots of middle class people. Forget the developers, the speculators, they are in the minority. Show you are a Government for the people, Pakatan Rakyat! Those prices in Penang must come down! The attacks on the Pakatan Rakyat Government, “The dying hills”… Read more »

tunglang
tunglang
9 Jul 2012 6.25pm
Reply to  Ahmad Sobri

Kedah has set a precedence & this will win more hearts & votes than mere Rm100 setahun (boleh beli apa?). My salute to the Kedah government for its resoluteness & sincerity for the people’s welfare. Nevermind that there may be less frenzy SingLand building, less wildebeest speculations (richie can use spare money to help the needy), less MY2H buyers, less surreal lifestyle of unaffordability thro’ credit living of Bing Chui. But I still believe Kedah gomen is not that stupid just to implement something that is seen not favorable to economic climate & its state potentials. With political will to… Read more »