'House prices determined by state governments' - Noh Omar

Any decision to raise house prices falls under the scope of state governments, Urban Wellbeing, Housing and Local Government Minister Tan Sri Noh Omar said.

Location, premium charges and costs determined by local authorities were among factors which contributed to higher house prices, he said.

This includes development and compliance charges as well as the affordable housing provision quota set out by state governments to developers.

"In Selangor, for example, developers must set aside 30 percent for affordable housing for development exceeding five acres, a scheme known as 'Rumah Selangorku'.

"Therefore, developer may raise the prices on normal houses to offset the costs in providing affordable housing," Noh explained.

"The Selangor government only determine policies and do not provide any financial contributions for such developments," he said in response to Che Mohamad Zulkifly Jusoh (BN-Setiu) who asked on rising property prices in Dewan Rakyat today.

Noh added that the government is ready to reopen the First Home Financing Scheme or MyDeposit to allow for more people to access the facility. Application for MyDeposit ended on June 30.

The scheme was implemented to help the middle 40 percent income bracket (M40) with household incomes of between RM3,000 and RM10,000.

The scheme involves a contribution of 10 percent of the sales price or a maximum of RM30,000, whichever is lower, to first-time house buyers to help them buy a house costing less than RM500,000.