By THE STAR
KUALA LUMPUR: The Real Estate and Housing Developers’ Association (Rehda) is appealing to the government to create a level playing field for the local industry to compete with the Chinese property developers.
Its president Datuk Seri FD Iskandar said the local developers are currently operating under conditions which have squeezed its profit margin from 35 per cent in the past to just less than 15 per cent now.
He, however, said the local property developers are supportive of the foreign direct investments especially by China into Malaysia’s local property market as it promotes wellbeing of the rakyat.
“The developers from China, who come here, do not have low cost and Bumiputera quotas. Also, they are given a five-year tax break.
“So, what is given to them, can also extend to us. We are the original taxpayers. Let’s help the locals first,” he said in his keynote address at the PropertyGuru Malaysia Real Estate Summit 2017 here.
Iskandar said other than rising costs, the tight regulation is one of the factors that have resulted in earnings pressure.
“This is a highly regulated sector, with over 50 laws, regulation and guidelines,” he added.
For example, FD Iskandar said, the state governments keep forcing the property developers to build low cost houses of RM42,000 and below in unsuitable locations.
“States have the big landbank and should take their money and build low cost houses,” he said.
PropertyGuru’s Asia Real Estate Summit, also held in Singapore, Thailand and Indonesia, focuses on cutting-edge strategies and innovation in the property industry.
– Malaysia Property News