There has been no announcement of an extension for Home Ownership Campaign (HOC) thus far. Perhaps this is because of the success thus far. It has hit its target and has helped to clear quite a number of unsold units from the market including those built under PR1MA programme. The HOC’s results article here: HOC success is not successful enough. Unsold is still rising. Anyway, PR1MA has already indicated that it will continue to offer discounts of up to 20%.
Article in themalaysianreserve.com PR1MA says that despite the absence of HOC, it will continue to offer discounts of up to 20% to buyers as it aims to clear off at least RM3 billion of unsold houses. It said, “Up to 53 PR1MA projects nationwide, totalling more than 13,000 units with a gross development value of more than RM3 billion, will be opened for discounts and rebates throughout 2020.”
During the 12-month HOC in 2019, PR1MA sold 9,306 units. Housing and Local Government Minister Zuraida Kamaruddin also announced that 56,342 units of homes under remaining 65 PR1MA projects have been approved for resumption. PR1MA’s debts will be zero-rised by 2023. Zuraida also said that under the realignment with the National Affordable Housing Policy launched by the KPKT in May 2019, PR1MA will now be developing more homes priced below RM300,000. Article in themalaysianreserve.com
Frankly, if HOC is to continue, it has to start to be more targeted. It’s not something for everyone and certainly not to benefit the experienced investors. Aim at just First-Time Home Buyers perhaps. Plus it is worth noting that should some of these first-time home buyers fail to have sufficient downpayment, it may be a better choice to provide them with a rent-to-own scheme versus asking them to continue saving up until they have the downpayment.
I am not sure if their salaries could rise faster than property price increase unless of course the RM300,000 price tag will remain the same for many more years to come. Added to the fact that these first-time home buyers should also be financially savvy not to spend their money on something unnecessary all the time. So, in the mean time, PR1MA’s discounts may really come in handy. Start viewing.
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Next suggested article: Letting just the property market to determine itself via demand and supply? Not the best option, definitely.
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