REHDA Institute: Uniform, one-size-fits-all approach across all states and districts does not work.

REHDA Institute: Uniform, one-size-fits-all approach across all states and districts does not work.

Every state does not have the same type of demand versus supply…

Some states are growing faster than others. Some states are having a population deficit. Some states are enjoying population growth. Some states have a larger land size. We can see so many differences across the states and yet, more often than not, policies are usually the same across all. Perhaps we need to be stricter with the development approval for some states but we may need to encourage some others too… Do read on about what some experts are saying. (nope they did not invite me, so I was not there. I am just a blogger… not some big titled experts).

Article in businesstoday.com.my “A uniform, one-size-fits-all approach across all States and Districts has proven ineffective,” he said, noting that housing supply often fails to match local demand patterns. He added that the aim is not to dismantle the current quota system but to refine it responsibly as socio-economic conditions evolve.

The Institute also highlighted that net disposable income, rather than gross household income, should be adopted for affordability assessments. This metric, it said, better reflects actual spending capacity.

Recent DOSM data indicates that median household income grew at a CAGR of 5.2% from 2022 to 2024, outpacing median house price growth of 3.7%. Both Bumiputera and non-Bumiputera households recorded higher representation in the RM9,000-and-above income brackets over the past decade.

One of the immediate priorities identified was the utilisation of idle land, particularly parcels originally reserved for schools or public amenities but remaining unused or oversupplied. Unlocking such land, the Institute argued, could significantly improve housing availability. Article in businesstoday.com.my

My personal thoughts on quota?

Speaking from perspective of property as an investment for future. If we buy units which are under a quota limit, it will be limiting the potential of these units in the future. The reason is simple. The target market will be smaller and thus the owners of these units will not be able to benefit fully from the price increase even if it has happened for the whole development except for the units under quota where the price rise will be more modest due to lower demand. If you ask me, I would prefer to aim for the full price increase in the future, say 10 years down the road versus having a small discount today.

Alternatively, we can also look at how to make it possible to still have the discount to encourage investment but at the same time, if the property has been owned for over a certain period of time, then automatically this can be sold to non-bumi. As for the period of time, maybe 6-8 years can be a starting point. We can adjust this after a few years of monitoring. Let’s prove that we are capable to be very adaptable for the benefit of everyone. Having unsold units does not benefit anyone at all including even the state government yeah.

Happy investing.

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