Tighten Sale And Purchase Agreement To Deter Speculators - Hilmi

27/01/2007 bernama.com

PENANG, Jan 27 (Bernama) -- State governments should tighten the sale and purchase agreement (SPA) of medium-low-cost houses to deter speculative buying, said Finance Ministry Parliamentary Secretary Datuk Seri Dr Hilmi Yahaya.

He suggested that a clause be incorporated in the SPAs involved to compel the buyers to keep their houses for at least 10 years before they can be resold.

"This can help prevent unscrupulous people from taking advantage of the situation to make quick profits by buying houses built by the government at below market prices and later selling them at higher prices," he told reporters after handing over keys to 213 housebuyers in Taman Manggis Indah in Balik Pulau here today.

He said that the tightening of the SPAs would also help the government to sell the houses to only those who were eligible as the cost of building houses was increasing.

"For example, in Penang as the cost of houses is rather expansive, the state government is building affordable houses to help the people own houses but unscrupulous people take advantage of the situation to make quick profit," he said.

He said that the tightening of these SPAs was necessary as the state and federal governments did not have the authority to stop medium-low-cost house owners from reselling them to others.

"If the situation persists, housing schemes meant to help people own houses will fail as speculators take advantage to rake in huge profits," he added.

-- BERNAMA