Kuala Lumpur: The property sector is likely to rebound in the second-half of 2022 (H2 2022), bolstered by supportive policies and positive economic outlook.
Pro Men Sdn Bhd founder and property entrepreneur Michelle Chao said the policies introduced by the government to boost the property market and the country’s manageable Covid-19 infection rate are also helping to stir 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 (RPGT) 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% 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% 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 income,” she said on Wednesday on Bernama TV.
Chao said those who are planning to purchase a property must conduct proper and careful research and consider income stability before jumping in.
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.
Chao pointed out that the recent hike in the overnight policy rate (OPR) would result in higher borrowing costs affecting loan repayments, however, the marginal rise is not expected to affect purchasers of properties priced below RM500,000 very much.
Citing an extra payment of about RM150 to RM200 per month, she said this was still manageable.
Chao also pointed out that developers were offering attractive packages to entice buyers and spur the market, possibly absorbing some costs as prices of materials and labour have risen recently.
“However, for properties priced above the RM1 million threshold, borrowers would be negatively affected, thus demand in this particular segment could slow down in H2 2022.
“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.
