The Penang Real Estate and Housing Developers Association (REHDA) does not expect home prices to drop, instead developers will construct smaller homes, reported Bernama.
This comes as developers had to bear the increased cost for development projects, said its chairman, Datuk Jerry Chan.
“Today, we have to deal with all these contributions, so who will pay for this in the future? Our children, who will pay for it. What we are doing is we are penalising the new generation of house buyers,” he said.
“We are making it tougher for the new generation of house buyers, they have to carry the burden of the charges, the burden that our previous generation did not have to carry.”
“It is very important to understand why it is so expensive today. It is because the costs get pushed to the development projects and being pushed to the new house buyers.”
As such, Chan called on financial agencies to relax the conditions for first-time home buyers in order to ensure their chances of owning a home.
He noted that the loan scheme offered by banks made it hard for first-time buyers to secure a loan. As such, banks should provide a higher rate percentage of loans for first-time home buyers.
Chan also urged the government to lower the charges imposed on foreigners purchasing properties in Penang.
“I think that is the way to bring investments to the state. Money that has been brought to the country is good for the local economy.”