Shot in the arm for Malaysian property sector

Shot in the arm for property sector

By ANGIE NG

PETALING JAYA: The stage is set for the emergence of a more competitive and efficient property sector following the bold changes to the public delivery system for the sector.

Developers and property buyers gave resounding applause for the Government's latest initiative, which will result in greater transparency and flexibility, better building delivery system, fast-track approval and an investment friendly environment.

From the shortening of project approval to between four and six months to the issuance of strata title within 12 months, the comprehensive changes to the public delivery system have been hailed as uplifting and revolutionary.

To encourage developers to build then sell, they are now offered incentives such as exemption from paying deposit for a housing development licence and fast-track approval of under four months.

According to SP Setia Bhd Bhd group managing director and chief executive officer Tan Sri Liew Kee Sin, the fast-track approval process and greater efficiency of the public agencies would translate into substantial cost savings in the building and delivery process of property.

“Developers will be able to better plan for speedier and more efficient project launches and delivery. The new environment will raise their competitiveness and result in more innovative and well-planned projects in the market,” he said.

Mah Sing Group Bhd president and group chief executive Datuk Leong Hoy Kum said the sharp reduction in the approval time to between four and six months, and the implementation of One-Stop Centres would do much to enhance business efficiency and facilitate development of the property market and the country's economy.

Expediting the approval process would be a boon for developers as it would lead to lower holding cost, translating into better efficiency of capital. These savings, in turn, could be passed on to property buyers, making it a win-win situation for all parties.

Real Estate and Housing Developers Association president Ng Seing Liong said although land matters and local governments were not directly under the purview of the Housing and Local Government Ministry, the clear mechanisms and legislations in place would ensure the success of the initiative.

“With a strengthened legislative environment, developers and industry players should be able to conduct business with greater confidence. Property buyers would also benefit from greater efficiency in the system,” Ng said.