Steps taken by govt to control house prices bearing results

The steps taken by the government to control the prices of houses and curb speculation have shown positive results, according to the Urban Wellbeing, Housing and Local Government Ministry.

In a written reply in the Dewan Rakyat today, the ministry said the house price index change was recorded at 5.9 per cent with the average price of a house at RM305,075 in the second quarter of this year.

It said comparatively, the house price index change in the second quarter of 2014 was 8.4 per cent with an average price of RM302,716.

"This shows a drop of 2.5 percent in the house price index in the country," the ministry said in reply to a question from Datuk Ar Wan Mohammad Khair-il Anuar Wan Ahmad (BN-Kuala Kangsar).

He had wanted to know the plans of the government in terms of policy to enable the house prices to drop to an affordable level.

The ministry added that the government had implemented numerous initiatives and incentives including strategic fiscal policies to restabilise the prices of houses in the market and control speculation since 2013.

"It is to ensure the rate of house ownership goes up among low and medium income earners with the rise in the supply of houses in the market," the ministry added.