Published: Thursday July 12, 2012 MYT 3:53:00 PM
Awang Adek: Premium charges not the reason for house price hike
KUALA LUMPUR: The premium charges are not the reason for or affecting the steep rise in house prices, said Deputy Finance Minister Datuk Dr Awang Adek Hussein.
He said the charges were not something new and had long been imposed on development projects nationwide and there was no evidence to show that they had contributed to the steep rise in house prices.
“On the whole, the premium charge rates have not been raised,” he was replying to a question from Senator Datuk Chiw Tiang Chai at the Dewan Negara Thursday.
Awang Adek said there were many factors that contributed to the increase in house prices, especially in the cities.
He said they included increase in the cost of building materials and wages which contributed as much as 30 per cent to house prices, demand exceeding supply especially on landed property in major cities, buyers' speculation,