KUALA LUMPUR: The additional RM5 billion allocated by the government on house financing for first-time home buyers will address financing issues buyers face and reduce the number of abandoned homes and hang units.
Selangor caretaker chief minister Datuk Seri Amirudin Shari said the state government lauded the plan announced by Prime Minister Datuk Seri Anwar Ibrahim yesterday, which he claimed would tackle many issues in the property sector.
"This would tremendously help us because our data showed that almost 60 per cent of homeowners had to reject the houses offered to them by the state government due to financing problems.
"Hopefully, the announcement can help us with the development of new projects, reducing abandoned projects and also ensuring hang units can be sold," he told reporters after the groundbreaking ceremony for Apartment Idaman here today.
He added the state government is 'on the right track' and is always ready to assist in the property sector's recovery for the country.
"I believe we are on the right track, especially on the back of improving economy and better ringgit value compared to last month," said Amirudin.
Under the Madani Economy framework, the government is committed to improving homeownership for first-time buyers.
The government will increase financing guarantees up to 120 per cent of the house price, applicable for houses up to RM300,000.
It also has set aside an additional RM5 billion for the initiative on top of the allocated RM5 billion in Budget 2023.
The framework, dubbed 'Madani Economy: Empowering the People', had set seven benchmarks to be achieved in ten years.
-end-