Governments play an important role in any property market because they act as an influencer. When the market gets too hot, cooling measures will be introduced so that the market will not burst. When market is lacklustre, the government needs to introduce stimulus and incentives to make it vibrant again. Malaysia has announced the stamp duty exemption for ALL purchases made during the Home Ownership Campaign (HOC) 2019. Article here: Stamp duty exemption to all, not just first-timers The jury is still out on whether this will be enough for a market with a negative sentiment. Let’s hear what FIABCI Malaysia President Michael Geh’s views about the potential for new stimulus and incentives in March 2019.
Article in AsianCorrespondent.com here. Geh said the current property downturn in Malaysia could be reversed once the newly-created National Housing Policy takes effect and when implementors announced their findings and recommendations. He said, “There will be announcements of affordable housing, actions by Bank Negara Malaysia to stimulate the market and other incentives that are still under discussion between the industry and the government.” He added that the Bank Negara Malaysia (central bank), the Housing and Local Government Ministry and the Finance Ministry were holding regular engagements to come up with “goodies” for the industry and home buyers. He said, “The new government is taking extraordinary steps in a tenacious manner that will help spur both the primary and secondary market of the property industry this year.” Article in AsianCorrespondent.com here.
There will be an expo for unsold properties in March 2019 where properties will be sold at a discount of 10 percent or more. Over 20,000 units with attractive discounts in March This should help to clear some of the unsold units. This is what Knight Frank said about the Malaysian property market for 2019. In the mean time, if we are thinking of buying, it’s best to start evaluating. Comparing and determining what’s needed versus what the majority thinks will become essential to buy the right property. I echo what Geh has in mind too; the government will be doing more as and when needed because a subdued and negative market is not what the market needs and what the government wants. Happy following.
written on 4 Feb 2019
Next suggested article: How soon is soon and how low is low