The government plans to build 257,252 houses nationwide in a continuous effort to allow more low and middle income earners to own houses.
According to the Economic Report 2015/2016, the initiatives are:
1Malaysia Housing Programme under the 1Malaysia Housing Corporation (PR1MA).
- 210,000 units with prices ranging from RM100,000 to RM400,000.
- Priority for households earning below RM10,000.
People Housing Programme
- 15,996 units.
- Priority for low-income earners and the resettlement of squatters.
Rumah Mesra Rakyat 1Malaysia
- 2,183 units.
- Priority to assist fishermen, farmers and families who do not own houses or live in dilapidated houses.
Rumah Idaman Rakyat
- 6,296 units with 60 percent priced below RM250,000 and 40 percent between RM250,000 to RM350,000/
- Priority for middle-income earners and first-time buyers.
Rumah Aspirasi Rakyat
- 11,872 units.
- Priority for youth to own their first houses, particularly the newly-employed.
1Malaysia Civil Servants’ Housing Programme
- 10,905 units.
- Priority for civil servants.
Curbing speculation
Meanwhile, to curb the rise in house prices, several lending guidelines were introduced, which include:
- A maximum 'loan-to-value' at 70 per cent on the third property.
- A maximum tenure for housing loan capped at 35 years from 45 years previously.
- Raising the Real Property Gains Tax (RPGT) from 15 per cent to 30 per cent on the disposal of property within three years.
- Increasing the minimum price of property from RM500,000 to RM1 million for foreign purchase.
- Abolishing the Developer Interest Bearing Scheme (DIBS).
