I read theedgemarkets.com nearly daily and they recently have a very good article featuring the views from many prominent property personalities in Malaysia about the state of the property market here in Malaysia. The title of the article is aptly titled, “Property market outlook and opportunities in times of uncertainty.” (click to read full article yeah) It’s a long and informational article and below would be a short summary from some of their views.
KGV International Property Consultants Sdn Bhd executive director Samuel Tan A reduction in or suspension of stamp duty and Real Property Gains Tax (RGPT) would be welcomed to encourage property purchases. It would be a splendid idea to hold another Home Ownership Campaign (HOC) to clear unsold stocks this year. There will be opportunities in the auction market where some properties are more than 50% lower than their original reserve prices. Developers will also be more willing to give more discounts and freebies, as they need to manage their cash flow well.
Henry Butcher (M) Sdn Bhd chief operating officer Tang Chee Meng Local buyers appear to have adopted a wait-and-see attitude as they are worried about the economy slowdown and oversupply situation. The government can continue with the stamp duty exemptions offered during the HOC last year as well as relax lending criteria by the banks. On the primary market, developers will be forced to offer attractive sales packages. This will be a good time for investors to buy their dream homes at a lower price.
Real Estate and Housing Developers’ Association Malaysia (Rehda) president Datuk Soam Heng Choon For buyers, the government should look into extending the HOC so that stamp duty would be exempted. The RPGT and maximum loan-to-value ratio of 70%, which is imposed on borrowers with three or more outstanding housing loans, should be removed. The extension of loan tenures up to 40 years or age 70 should be allowed for properties priced below RM500,000, instead of RM300,000.
PPC International Sdn Bhd managing director Datuk Siders Sittampalam Asking prices are expected to be 10% lower in the secondary market and foreign investment is likely to suffer as a consequence of the current situation. Real estate investment trusts (REITs) and office space will be impacted and declining footfall will hit shopping malls the hardest. There will be a buyer’s market, as people with funds may pick and choose what they want. However, these buyers must be prepared to wait for capital appreciation.
Fiabci Malaysian Chapter president Michael Geh Despite the political instability and Covid-19 pandemic, buyers will be tempted by the low-interest loans to acquire properties. As long as Malaysia has political stability, the property market will remain attractive as the legal and ownership laws are of Commonwealth standard and the country has relatively high living standards and low living costs. To boost the country’s property market, the government should abolish the RPGT and continue to support first-time homebuyers by easing upfront payments.
There are always opportunities for investors who know what they want. For instance, a purchaser may be an upgrader who wants to buy his or her dream home to house three generations of the family, or a retiree who wishes to downsize or return to his or her hometown.
Rahim & Co International Sdn Bhd research director Sulaiman Saheh For investors who have been waiting for the right opportunity and have available funds, the lower prices and additional discounts are a good bargain, and low interest rates will help to reduce the burden of home financing.
Although investors and developers will relook at their risk appetite in selecting development projects, there is demand for affordable properties, notwithstanding the current change in consumer priorities.
As the property market is heterogeneous because of its location and socio-demographic idiosyncrasies, local owner-occupier markets in established and well-connected suburban areas are expected to remain stable.
These are just some of the views. For a full article as well as views from all the experts, please do read: Article in theedgemarkets.com If you do not agree with all the views, it’s perfectly okay. What’s important is this. All of their views continue to contain positive views about the property market and that there are opportunities to be found yeah. Especially now since we are considered to be still under a health crisis which has also turned into a economic crisis.
Let’s hope we recover soon. We can see that the views differ even among these property industry experts yeah. Happy reading and well, take all the appropriate actions yeah. Dreaming alone does not change anything yeah. If you like, you can read a DREAM HOME article here as well. Stay at home and stay safe.
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