IS TONY PUA PROPERTY- DEVELOPERS’ CHAMPION?!

Is Tony Pua property- developers’ champion?!

By, Jegathiah Ganasu

Its easy to call the government by all sorts of names though. Lately it has been called as hare-brained, just because of its ministers’ immediate reaction to the on-going crisis- a serious mismatch in demand and supply of property developments. As per the report by our central bank on Nov 17, the supply of the properties for residential purpose has been escalated to an alarming level. 

The Bank Negara Malaysia (BNM) has underscored that the over-supply of the residential properties hit historical 130,690 units at the end of Mac this year. And 83% of those are priced more than RM250,000.00. Two days after the announcement by the central bank, Datuk Johari Abdul Ghani, the second Finance Minister announced that there will be a directive to halt temporarily the developments shopping malls, commercial complexes and condominiums, valued RM1 million and above.

The following day, Fadillah Yusof, the Work Minister, responded that the directive was not a blanket freeze and the developments would be evaluated one by one for approval though. This again followed by another statement by Johari saying that the freeze would only applicable for the projects which are yet to be approved and its depend on the assessment of the market situation, by the relevant authorities from time to time. 

Tony Pua’s on the developers’ side

On the back of this, Tony Pua, The Law Maker of Petaling Jaya Utara ridiculed the immediate response by the Second Finance Minister, saying that the moratorium has been announced without a proper study on the residential properties’ glut and its consequences to the economy. 

But it was more surprising when Tony Pua- one of the most vocal DAP- leader, notably on 1MDB issues, totally ignored the helpless B40 and M40 of the Rakyat whose pockets were not deep enough to own a decent property. Tony Pua seems like on the developers’ side and backing up them at the expense of the helpless Rakyat.

Knee-jerk reaction is a must

The so called knee-jerk reaction in this situation is a must as it will redirect the properties’ market equilibrium, thus pressure the price to the south and enable the people especially the youths from B40 and M40 segments to consider buying properties without much difficulties amid punishing requirements by the banks for mortgages.

Studies on the glut are unnecessary

The temporary moratorium is an appropriate move and further studies on its effectiveness as suggested by the DAP’s publicity secretary are unnecessary as the BNM’s report is more than sufficient for the government to act fast for the sake of both developers and the desperate people, to own houses.

Furthermore, it’s a well-known fact now days that the commercial buildings are becoming increasingly irrelevant as the number of brick and mortar businesses are dwindling since the online businesses took precedence among the people.

Tony Pua’s prompt reaction understandable

However, Tony Pua’s reaction to the freeze is understandable as the property developments and its related industries’ collectively accounting for 10% of GDP and also, more importantly, the big bulk of his electorate lies there in. Having said that, what are the soothing words of the law maker for those who were longing for own houses?

Government’s measures still lacking

Although the moratorium against the property developments with price tags of RM1 million and above is timely, its still far from arresting the glut which caused by properties valued more than RM250,000.00. So, why not the government and property developersteam up to come up with properties priced within this price range (RM250,000.00), within the cities, since the building materials’ prices are set to decrease due to the glut?