The Johor state government plans to impose a development charge on property projects carried out here.
Bernama reported, it would be levied on the applicant if a development project was approved for conversion of land use, which changed the floor area, compactness and density, and thus would raise its value.
The matter is at the final stage of coordination before being presented to Menteri Besar Datuk Seri Mohamed Khaled Nordin, said state housing and local government committee chairman Datuk Abd Latif Bandi.
He said the development charge’s purpose is to accommodate provisions to provide and improve infrastructure and public facilities in the area, resulting from the approval given to the plan.
The charge rates would not have a big impact on the selling price of property units, instead it would benefit not only the local authorities, but also the developers, community and state.
On Iskandar Malaysia’s serviced apartment developments, he said that although 26,677 units were earmarked until 2025, as at the end of the second quarter of this year, 95,150 units were already built, putting a strain on provisions for public facilities and affordable housing.