The Real Estate and Housing Developers Association (Rehda) hopes the government will revise the bumiputra quota policy to not exceed 30 per cent in order to boost the housing sector.

The bumiputra quota currently ranges between 30 per cent and 70 per cent; for example in Selangor it is 50 per cent and in Johor, 40 per cent.

Rehda chairman, Datuk Michael K C Yam said that Rehda also wants the bumiputra quota release mechanism to be standardised, structured and transparent, requesting that the government allow for automatic release of unsold bumiputra units to the open market.

In its wishlist for Budget 2009, Rehda requested that the bumiputra discount be capped at five per cent and made applicable only for houses priced RM250,000 and below, and for low cost and medium cost houses to be excluded from bumiputra discount.

Rehda also suggested that the government take over the task of providing low cost houses, through Syarikat Perumahan Negara. In view of escalating material prices, low cost housing ceiling price should be reviewed from RM42,000 to RM60,000 per unit and to RM75,000 per unit for Klang Valley.

The association also hopes that the government will provide tax incentives for REITs to attract more investors and tax deduction on housing loan interest incurred for houses priced RM250,000 and below. Yam said that it also hopes for further downward revision of stamp duty rates.