Unsold Properties Not Serious in Sabah
The issue of overhang properties or unsold completed units in Sabah is not serious based on the data recorded since six years ago, said Deputy Chief Minister Datuk Jaujan Sambakong.
Jaujan who is also Local Government and Housing Minister said to date, there are 10,769 unsold units with an average of 1,795 units per year.
“My ministry supports and encourages efforts to overcome the overhang problem in the property market in Sabah so that it will not get worse,” he said when answering a question by Lumadan Assemblyman Matbali Musah, at the State Legislative Assembly sitting, here, Wednesday.
To this end, he said, the Federal Finance Ministry with the cooperation of the Housing and Local Government Ministry had announced the Home Ownership Campaign as an initiative to boost the property industry.
“It is also hoped that the campaign can tackle the unsold completed unit issue apart from encouraging the people to own houses through price reduction.
“The campaign started on Jan 1, this year, where the participating developers will provide a 10% discount on existing completed units while the government will offer a stamp duty exemption on sales and purchase (S&P) agreement.”
Apart from that, the government has also introduced the Fund My Home Scheme where the people can obtain financial assistance to buy houses through peer-to-peer lending method.
“Under the scheme, buyers only need to pay 20% in cash for the house while the balance 80% will be paid by the financier.
“After five years residing in the house, buyers have the option to continue staying there and buy the house or they can sell it."
“Should the buyer do not want to stay in the house, he or she can sell and obtain the profit difference of between the market price and the loan amount,” he said.
The government, he said, also welcomed the rent-to-own scheme by private developers.
“Under the scheme, developers will offer buyers a rental unit for a specified duration set by the developers."
“Buyers will have the option to buy the unit on the set price on an agreed duration by getting a full loan from any financial institution.” Meanwhile, Jaujan disclosed, to date, there are three projects under the Malaysian Public Servants Housing Programme (PPAM) in Sabah.
“These projects involved 1,296 apartment units and 298 units of terrace houses."
“Of the figure, some 1,318 units had been obtained by public servants under the programme,” he said.