Budget 2021 Prioritises The Welfare of Malaysians
First Time Home Owners & B40 Gain To Benefit Right Homes, Right Location To Ease Overhang in Market by Sheldon Fernandez, Country Manager, PropertyGuru Malaysia
We are happy to see that the Budget 2021 prioritises job creations and economic drivers. There have been many initiatives that support the creation of jobs such as MyStep which allocates RM700 million to offer up to 500,000 contractual jobs in the civil service and government linked companies (GLCS). As well as RM 1 billion allocated for upskilling and reskilling programmes.
It is also heartening to see that the unemployed and senior citizens such as those in the B40 are not forgotten, with tax breaks for companies hiring senior citizens as well as the National Employment Council being set up to be chaired by the Prime Minister to coordinate job creation, upskilling and employee training.
It is imperative to foster job creation and to stimulate economic growth which in result, will also impact the property market.
To encourage first-time home owners, full stamp duty exemption for properties priced RM500,000 and below is a welcomed move especially with 81% of Malaysians intending to purchase a home by end 2021 according to PropertyGuru’s recent survey. According to the same study, home seekers aged 22-29 years old and renters are most likely to buy property post-MCO, with 47% and 51% respectively sharing that the outbreak would not delay their potential purchases.
RM1.2 billion has also been announced for the development of low income households. Rent-To-Own programmes for first-time buyers have also been prioritised with the government working with financial institutions, which will involve building 5,000 PR1MA homes worth over RM1 billion.
With good intentions to help both the B40 and low income households, it is imperative to note that the right homes in the right locations need to be developed to ease the overhang that is currently being faced by the market. NAPIC revealed that the Malaysian property overhang climbed 3.3%, with houses priced between RM200,000-RM300,000 leading the supply.
— end of media statement —
Love to be updated on all investment news? Sign up for KopiWeekly. (only once per week of property, finance, investment news and more)
Next suggested article: PropertyGuru Asia Property Awards: All the winners