Speaking to FMT, National House Buyers Association (HBA) Honorary Secretary-General Chang Kim Loong said HBA welcomed the move to scrap the discounts.
Earlier today, it was reported that the Selangor Government would scrap the discounts for the purchase of serviced apartments, Soho (small office home office) and Sovo (small office versatile office) units in the state.
Chang said that the Selangor Government’s move would ensure that no person would be left out of the affordable housing equation, adding that the pricing for Soho and Sovo in the state is now more reasonably priced.
“When a percentage of their units is sold at a discount, the price of the remaining properties will have to be marked up to ensure that the projected level of profits is met.
“Property developers are profit-orientated and are not in the business of doing charity work.”
Chang said it was meaningless to grant discounts to one particular race at the expense of others when all of them are on the same level playing field, with similar household income criteria.
He added that HBA was against any racial profiling when it came to low-cost, low-medium-cost, medium-cost or affordable housing schemes.
“Whoever deserves a house must get a house, if his or her financial standing permits.”
Chang also urged the Selangor Government to ensure no developer took advantage of the scrapping of the 10 per cent discount to increase their profits by the same margin.
He added that the property sector had long been considered as a catalyst of growth for the economy and it should not be bogged down by outdated policies, such as a Bumiputera discount across the board.
Earlier today, Selangor Investment, Industry (small-medium enterprise), Commerce and Transportation Committee Chairman Teng Chang Kim was reported as saying that the discount would be scrapped.
He also said that the prices of serviced apartments, Soho and Sovo would henceforth be set by the state government, with the highest price for a serviced apartment at RM270,000 with Soho and Sovo units at RM230,000.