By OMAR REDZUAN
DURING Budget 2020, the government announced that it will lower the price of properties sold to foreigners.
Previously, foreigners can only buy condominiums priced at above RM 1 million only.
But under the budget, the price ceiling was lowered to RM600,000.
This is no doubt to rejuvenate the property market which has billions of unsold property overhang.
But this move reeks of favouritism and hypocrisy.
The government should not kowtow to the property developers.
For starters, why should the government give in to the developers to sell their unsold condominiums?
It is the developers’ fault for not conducting a proper market study before building these expensive condos.
The developers know for a fact that the economy is weak and that there will be a slowdown in the property market.
These condominiums are way out of reach for the average rakyat.
Property developers should focus on building affordable homes which is in hot demand among the rakyat.
But obviously, affordable homes are not lucrative enough for these developers.
In its study, Khazanah Research Institute already said that what the country needs are affordable homes.
These affordable homes should ideally be priced at below the RM300,000 price category.
Khazanah had also said that banks should not be complicit with these property developers.
Banks should not introduce innovative financing for these high-end houses and condos.
Property developers meanwhile must not be greedy and think about the rakyat for once.
But to the property developers defence, Prime Minister Tun Dr Mahathir Mohamad had said this leeway is temporary.
And this measure had to be done as a huge unsold property can drag the economy lower.
But in the future, the government should not kowtow to the property developers.
Property developers must do a proper market study before building expensive condos.
Otherwise, they would whine once again to seek the government’s help.