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AS a leading affordable housing developer, LBS Bina Group Berhad calls for greater initiatives to encourage homeownership.

LBS executive chairman Tan Sri Lim Hock San highlights the current challenges faced by the property industry such as the ongoing labour shortage, rise in compliance costs, raw material prices and interest rate hikes on property developers.

These challenges directly impact property prices causing a steep increase, which burdens both homebuyers and property developers during this post-pandemic era.

Lim has proposed a series of ideas to tackle the obstacles the industry is currently facing, such as reintroducing the Home Ownership Campaign to prevent property overhang. The campaign has been proven to help stimulate property sales in 2021 when the industry registered higher volume of residential property transactions.

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LBS Bina has always been highly focused on building affordable homes. With its construction arm MGB Berhad, LBS Bina has been able to achieve respectable sales figures – evidence that this product category is more prevalent than ever. Lim commends the government on their affordable home initiatives but emphasises on the need to further focus on it.

Among his recommendations are that the housing industry is an integrated ecosystem, and key stakeholders are required to provide solutions that gel with one another to ensure profit for all parties. A few proactive suggestions were brought up to the government to strengthen the property industry.

Lim urges the government to introduce initiatives to control the rising cost of raw building materials to stabilise the market price. The average price of steel bars has seen a steep increase of 20% within just a year in May 2022 to RM3,910 per tonne, from RM3,258 per tonne in the corresponding period last year. He believes government subsidies may help control volatile material prices, especially during a time when our currency is weak, resulting in raw material price increase.

Lim urges the government to introduce initiatives to control the rising cost of raw building materials to stabilise the market price. The average price of steel bars has seen a steep increase of 20% within just a year in May 2022 to RM3,910 per tonne, from RM3,258 per tonne in the corresponding period last year.