KUALA LUMPUR (Oct 24): The government will not impose restrictions on property investments or limit the number of homes one can purchase, said Housing and Local Government minister Nga Kor Ming.
Such limitations could collapse the property market and affect related industries including construction, electrical appliances and banking, Nga warned during a media engagement session with the ministry on Thursday.
“Property investment is a tool for wealth preservation and inflation management,” Nga said. “If we take such a strategy, I am very confident the property market is going to collapse.”
Nga was responding to suggestions for a curb on home purchases for investment at a time when the market is plagued with unsold, high-priced properties.
“We already have real property gains tax to stop people from speculating,” Nga said. “So, that is enough.”
Gains from properties sold by Malaysians within three years of purchase are subjected to 30% tax and the rate declines to 20% for assets sold in the fourth year and 15% in the fifth year. The tax would not apply for disposals of properties held after five years.
The number of completed but unsold residential properties totalled 22,642 units worth RM14.24 billion at the end of June, according to the National Property Information Centre (Napic). By states, Perak had the highest number of overhang residential units followed by Johor and Kuala Lumpur.
Most of the overhang homes were priced below RM300,000 a unit, Napic data showed.
Stricter laws on developers
Nga also said that the ministry is mulling stricter regulations to prevent fraudulent practices in the housing sector that include travel bans and blacklisting for developers involved and their families.
The current Housing Development (Control and Licensing) Act 1966 only protects residential properties, commercial shops, officers, shopping centres and commercial units that are not subject to control.
Nga previously proposed the amendment for any cases of fraud to be prosecuted in court and offenders face a prison sentence of three years, a fine ranging from RM250,000 to RM500,000, or both.
Meanwhile, the Housing Credit Guarantee Scheme aims to assist at least 20,000 people next year, Nga said.
The scheme, which was allocated RM10 billion under Budget 2025, has so far benefitted more than 53,000 homebuyers lacking documentation, such as formal pay slips uncommon for gig economy workers.
Other measures to tackle housing problems include formation of a special task force to address abandoned projects which has since revived more than 700 developments for some 82,000 affected buyers as of September.