MP pans unending 'study' as PR1MA home buyers suffer 30pct losses

Thomas Su Keong Siong (DAP-Kampar) today panned the government's unending study on the issue of homebuyers overpaying for PR1MA homes, an affordable housing initiative spearheaded by the government.

Su, during Question Time in the Dewan Rakyat today, asked how the government intends to address the fact that some early PR1MA homebuyers suffered losses after developers decided to reduce the prices by up to 20 percent, on top of a 10 percent stamp duty exemption offered by the government under the Home Ownership Campaign (HOC).

Deputy Housing and Local Government Minister Ismail Abdul Mutalib said the government was studying the matter but Su was unsatisfied with the answer.

"Last year, the minister (Zuraida Kamaruddin) said she was studying the matter to find a resolution, but until now it is still being studied. How can this be?" Su asked. Ismail then told Su to calm down.

"We shouldn't be too aggressive. We must study so that the outcome will be beneficial to us," Ismail said.

He then proceeded to comment on efforts to provide housing for youths, but was interrupted.

Su said: "I'm talking about the original buyers, not youths. The original buyers who bought before the HOC, then the prices were reduced by 30 percent.

"They are now suffering losses, not only in terms of the property price but also paying high bank loans.

"The minister already said she wanted to study this problem but now it is still being studied."

Ismail said he understood that some buyers had taken this matter to court. "So, I think we wait and see, YB."

Pressed on when the study on the issue would be completed, Ismail declined to commit to a date.

"It is up to the courts," he said.

Deputy Speaker Mohd Rashid Hasnon then reined in the back-and-forth arguments, telling the House that it was the Question Time session and not the debate session.

In July last year, 1,058 PR1MA homebuyers filed a suit against the government-owned Perbadanan PR1MA Malaysia

Their lawyer, Mohd Khairul Azam Abdul Aziz, said some owners suffered up to RM100,000 in losses due to the subsequent price reduction and tax exemptions.

PR1MA itself is not responsible for the construction of affordable housing units, but instead engages and coordinates with developers to build these units.

The government offers incentives and land requirements to help developers build houses at affordable prices under PR1MA.

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