By NST Property/Sharen Kaur - October 3, 2023
sharen@nst.com.my
KUALA LUMPUR: LBS Bina Group Bhd hoped that the government would consider encouraging urban development through infrastructure development.
According to Tan Sri Lim Hock San, the company's executive chairman, sustainable urban growth is a key goal for many governments around the world.
"Infrastructure development is a cornerstone of this objective, as it directly impacts the quality of life for urban residents and the long-term viability of cities.
"With this, we recommend the government provide incentives to developers in order for them to incorporate smart technologies into their projects, such as energy-efficient building systems, smart grids, waste management solutions, and intelligent traffic management systems," he said in his company's wish list for Budget 2024.
Lim said that LBS is optimistic that Budget 2024, which will be tabled in Parliament on October 13, will bring about a significant change and positively influence property market sentiment through the implementation of stimulus packages.
He said that the government has an opportunity with this budget to assist the general public in addressing everyday challenges, particularly those related to homeownership.
The formation of a unity government is expected to create an environment that will attract more investors, foster economic growth, and improve the population's overall well-being, he added.
"We eagerly anticipate the government's commitment to ensuring the availability of adequate, high-quality, and affordable housing options, allowing more people to realise their dream of owning a home.
"Furthermore, building on our sales target of RM2 billion for 2023, we are optimistic that the government will introduce initiatives that will further support our ongoing projects. We are looking forward to witnessing a robust recovery in the property market," he said.
The revival of the Home Ownership Campaign (HOC), incentives for the adoption of the Industrialised Building System (IBS) precast system, strengthening environmental incentives for developers, and lowering compliance costs are also key points on the wishlist.
Lim said that LBS prioritises affordability in all of its projects as a people's developer.
Nonetheless, compliance costs, such as development charges, land conversion premiums, and strata title application fees, have risen.
According to Lim, developers and contractors are frequently forced to pass on these costs to consumers in the form of higher property prices.
"Given the current economic climate, we kindly request that the government consider imposing limits or reducing compliance costs associated with the development of a property," he said.
Lim also said that, despite the current inflationary challenges, the cost of essential items such as housing has risen.
He suggested that the government investigate additional measures to alleviate the financial strain on the public, particularly those aspiring to become first-time homeowners.
"Specifically, we propose the reinstatement of the HOC. The HOC's effectiveness during its previous run from 2019 to 2021 is well documented. Therefore, reintroducing it would stimulate demand, promote homeownership, and expand choices and affordability for prospective buyers," he said.
Lim said the government should also consider providing special incentives or subsidies for developers who incorporate the IBS precast system into their housing projects, as this can help reduce construction costs and make housing more accessible.
These short-term incentives can pave the way for the widespread adoption of IBS precast systems in the property sector.
The ultimate goal is to achieve higher construction efficiency, cost-effectiveness, and sustainability while maintaining or improving overall construction quality, he said.
Further, he said that the government should continue to support and expand green building development and consider providing grants to developers to encourage industry players to incorporate more green features into their developments, such as the use of renewable energy sources, including solar panels.
In addition, financing support for green financing with lower interest rates should also be considered, he said.
"With the increasing global interest in sustainable and green buildings, the capital expenditure to design and develop sustainable and carbon-neutral buildings can be an added cost to local developers, especially when it can be higher than conventional buildings," Lim said.
Source: https://www.nst.com.my/property/2023/10/962398/lim-lbss-budget-2024-wishlist-stimulate-real-estate-market
No comments:
Post a Comment