Property developers are looking forward to more incentives to develop green technology in the 2012 Budget.
Real Estate and Housing Developers Association Malaysia (Rehda) president Datuk Seri Michael Yam said in a statement that the adoption of green technology should be encouraged through incentives rather than regulations.
“The major restriction for developers to adopt green technology is cost.
“To ease developers’ financial burden in adopting green technology, the government should consider tax deductions for green developments.”
The association also suggested a waiver to be imposed on stamp duty equivalent to the greening costs, up to a maximum of the original stamp duty amount whichever is lower for the next five years when such properties were transferred from developers to buyers.
In the 2010 Budget, a fund of RM1.5 billion was allocated for soft loans to companies that supplied and used green technology.
Yam also urged the government to review the property price limit of RM220,00 under the first-home scheme.
“While Rehda is of the view that the scheme is an innovative initiative to assist young adults earning less than RM3,000 to own a home, there are not many properties priced below RM220,000 in the Klang Valley and other major urban areas.”
The scheme was introduced in last year’s budget, whereby Cagamas Berhad provided a guarantee on 10 per cent of the down payment for houses below RM220,000.
A 50 per cent stamp duty exemption on loan agreements was also introduced to assist first-time house buyers.
National House Buyers Association secretary-general Chang Kim Loong said that the government should ensure accountability and transparency in the scheme.
“We are hoping that the scheme is able to benefit the targeted groups. The government should ensure that only those eligible are getting the houses.
“We urge the government to look into the escalating price of properties in the coming budget.
“While the first-home scheme is a stepping stone, the government should also make sure that other properties are not overpriced,” Yam said.
Prime Minister and Finance Minister Datuk Seri Najib Razak is scheduled to present the 2012 Budget in Parliament on Friday.
