Implementation of New Policy on House Lot Ownership by Buyers of Bumiputera Status

29 November 2024

KOTA KINABALU: Starting from December 1, 2024, the Sabah State Government will implement a new policy of a 30% Bumiputera quota in the private housing sector.

According to a statement by Datuk Seri Panglima Dr. Joachim Gunsalam, the Deputy Chief Minister II and Minister of Government and Housing, to ensure that this 30% Bumiputera quota brings optimum benefits to Bumiputera-status buyers, the Sabah State Government has improved the policy by making several appropriate amendments.

The 30% Bumiputera quota will be maintained, whereby private housing developers must ensure that 30% of the total houses constructed are allocated to Bumiputera-status buyers, who will have the right to choose their house lots. This means that Bumiputera-status buyers have the right to select the house lots they desire, and developers will no longer be allowed to assign specific lots for sale to Bumiputera-status buyers as practiced previously.

To facilitate real estate transactions among Bumiputera-status house buyers, starting from the effective date of this new policy, the previous prohibition on reselling house lots owned by Bumiputera-status buyers will be lifted, he stated.

Thus, Bumiputera-status buyers can resell houses allocated from the 30% Bumiputera quota to any buyer without any restrictions. For house lots owned by Bumiputera-status buyers that have already had land titles issued with restrictions or prohibitions on resale before the effective date of this new policy, the title holders can submit an application to the Department of Lands and Surveys (JTU) to remove such restrictions or prohibitions based on the Standard Operating Procedure (SOP) of the Department of Lands and Surveys (JTU).

Any discounts or rebates offered by developers to non-Bumiputera buyers must be added to the existing 5% discount given to Bumiputera-status buyers. This means that if non-Bumiputera buyers receive a 15% discount or rebate, the private housing developer must ensure that Bumiputera-status buyers receive a discount of 20%.

This new policy aligns with the efforts of the Sabah State Government to reduce bureaucracy in the buying and selling of house lots by Bumiputera individuals. The government also believes that with this new policy, the market value of property owned by Bumiputera individuals will increase to a level comparable to that of properties owned by non-Bumiputera individuals.