If Bank Negara does NOT increase the OPR, will this help the property market?

If Bank Negara does NOT increase the OPR, will this help the property market?

Read the following article first.

Article in theedgemalaysia.com. In a note on Thursday, the unit of Fitch Solutions said minutes from BNM’s November 2025 meeting showed that its assessment of the 2026 growth outlook remains unchanged from the September meeting, noting support from resilient domestic demand.

“We are aligned with the bank and expect growth to slow from an estimated 4.6% in 2025 to 4.1% in 2026, the lower end of the BNM’s forecast of 4.0%-4.5%,” BMI said. 

BMI noted that the central bank had minimal concerns about inflation for now, as headline inflation has largely turned out as expected, averaging 1.4% between January 2025 and November 2025. Article in theedgemalaysia.com

The lower the rate, the better it is for the property market?

If we use the total transactions to answer the question, the answer is no. The quarter does show some trend though. Q1 and Q2 2023 shows lower volume of transactions while Q3 and Q4 2023 shows a higher number. This was repeated for Q1, Q2 2024 versus Q3 and Q4 2024. The below does not show Q3 2025 transaction numbers but based on available information, the total transactions is 108,250 property transactions. So it does seem that again the same trend of lower Q1, Q2 versus Q3 and Q4 is repeated for 2025.

So, conclusion is simple, the OPR does not impact the property transactions but the quarter does. Maybe people started to view properties in Q1 and Q2 and by he time they decide and the transactions happen, it is already in Q3 and Q4. So, what does this mean for you if you also intend to buy a property?

Please note that interest rate is already at a low point for some time already

The Lending Rate used to be much higher. I could even remember when my friend bought his Proton Wira and the interest rate was close to 10 percent! Haha. Would you buy a car if the rate is 10 percent today?

Interest rate has continued to trend lower and has stayed on the lower side thus far. With the expectations of Bank Negara Malaysia (BNM) maintaining the Overnight Policy Rate (OPR), it meant that the average lending rate is likely to be on the lower end versus those years before 2012.

If we are ready, anytime is a great time to buy. If we are not ready, then renting could always be a stop-gap measure until we are ready. Just do not take too much time to be ready and miss this opportunity of a low interest rate.

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