The current Home Ownership Campaign spearheaded by the government has seen approximately RM285 million worth of properties booked on the back of tax waivers and discounts offered by participating developers.
Unfortunately, the reality remains that not everyone looking for a home can actually afford one. With house prices largely seen as unaffordable at a multiplier of 5.0 to income in 2016, it is no wonder that the government has stated as part of the National Housing Policy a desire to grow the rental market.
With the current state of overhang, rental rates have certainly faced significant downward pressure with some areas falling by as much as 20% in 2018. Unfortunately, vacancies and overhang have tended to sit in price brackets beyond the reach of the B40 and, to an extent, the M40. Such a scheme could encourage investors to absorb excess housing stock, directly increasing supply of rentable homes at more affordable rates.
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