Shorter moratorium on PR1MA home resale will lead to speculation: HBA

PETALING JAYA: The government’s move to reduce the moratorium period for the resale of 1Malaysia People’s Housing (PR1MA) homes will encourage buyers to “flip” for monetary gains, leading to speculative activities.
National House Buyers Association (HBA) secretary-general Chang Kim Loong said the reduction of the moratorium period from 10 years to five years defeats the purpose of first-time buyers preserving their affordable homes.
“They were supposed to be ‘locked-in’ to discourage flipping. The bottom line was to endure that they sincerely keep ownership rather than make money by flipping. What has become of PR1MA objectives?” he said in a statement yesterday.
Chang suggested that the government consider commencing the five-year moratorium from the date of vacant possession. However, it will still encourage speculation as owners will be able to sell their homes within 14 months after vacant possession, assuming the construction period is 36 months.
Yesterday, Prime Minister Datuk Seri Najib Abdul Razak announced the reduction of the moratorium period as part of an initiative to make PR1MA homes more attractive to the masses.
He also said the combined income eligibility to purchase the homes has been increased to RM15,000 from RM10,000 previously.
Chang said the increased combined income eligibility is appropriate, given the increase in cost of living but stressed that buyers should be allocated houses that are suited to their income levels.
“Buyers within the RM15,000 per month (income eligibility) should not be competing with buyers who earn only RM5,000 per month,” he added.
In addition, owners of PR1MA homes must only be allowed to sell their units to eligible buyers, namely the low- to medium-income earners, who are first-time house buyers.