KUALA LUMPUR, July 28 — The property sector is likely to rebound in the second half (2H) of 2022, supported by the domestic economic recovery, the reopening of international borders and the policies introduced by the government to boost the property market.
Pro Men Sdn Bhd’s founder and property entrepreneur Michelle Chao Xiang Mei said the country’s manageable Covid-19 infection rate is also helping to boost the positive sentiment in the sector.
“We can see that the government has come out with a number of policies to boost our property market, such as the waiver on the Real Property Gains Tax and the Memorandum of Transfer (MoT) stamp duty waiver for first-time house buyers,” she said.
She added that the buyers will be able to enjoy a 100 per cent MoT stamp duty exemption when they purchase properties priced below RM500,000, while purchasers of properties priced between RM500,001 to RM1 million will be eligible for a 50 per cent discount on the stamp duty.
“We think this will help urban areas like Kuala Lumpur to rebound, but it could be a slower recovery for the suburban areas as it also depends on household incomes,” she said on The Brief programme on Bernama TV which was aired on Wednesday.
Chao said that those who are planning to purchase a property must conduct a proper and careful research before making any commitment, as a big-ticket purchase is highly dependent on one’s job stability and personal income.
She noted that now is a good time for buyers to leverage opportunities in the property market, especially if the properties are in a good location and are being offered at below market price.
Meanwhile, on Bank Negara Malaysia’s move to increase the overnight policy rate by 25 basis points to 2.25 per cent, Chao said although it will result in higher borrowing costs and monthly instalments for borrowers, it would likely not affect purchasers of properties priced below RM500,000 very much.
Borrowers would probably pay an extra RM150-RM200 per month, which, in her opinion, is still manageable.
She noted that despite the higher cost of raw goods and construction materials, developers are offering better packaged products to property buyers by possibly absorbing some costs, with more value-added features and affordable prices for new launches, including the government housing projects.
“However, for properties priced above the RM1 million threshold, borrowers would be negatively affected, thus demand in this particular segment could slow down in 2H2022.
“On that note, we hope the government could reimplement the Malaysia My Second Home (MM2H) programme to let more foreigners into the country and digest these higher property prices,” Chao added.