Written by: Syasya Nur
The Malaysian property sector is anticipated to undergo minimal changes for the rest of the year. To curb economic uncertainty, several policies have been put in place to stimulate the market.
Malaysian Property Sector Expected to Show Marginal Improvement
Penjana incentives improve property sales
New property sales are set to improve marginally in June to December 2020, according to MIDF Research. This is due to the incentives in the Short-Term Economic Recovery Plan (Penjana).
In particular, buyers are motivated by the benefits of the Home Ownership Campaign (HOC) under Penjana, including stamp duty exemptions on transfer of property and loan agreements as well as exemption from the real property gains tax.
Delays in Buying Property Post-COVID-19
Investors delay buying decision
Potential buyers are expected to delay their decision to purchase a property in the short-term despite the increase in interest to do so post-COVID-19.
Those who are keen to buy a home at the moment are mainly influenced by factors like the current low interest rates, discounts, and stamp duty exemption courtesy of the Home Ownership Campaign (HOC). These benefits will last until May 31, 2021.
However, the other camp of investors are deterred from acting on their buying decision due to the market uncertainty as a result of COVID-19. A large percentage of investors are opting a wait-and-see approach to see how conditions would fare in the near future.
What buyers look for in a home during the new normal
As a result of the new normal of remote work and distance education, agents have noted that Malaysians are placing more weight on factors that were once less of a concern. Features like good air ventilation, presence of natural lighting, multi-functional spaces, and low project density are now prioritised in buying decisions.
On top of that, the developer’s reputation and high-speed internet connection are also emphasised. Given the increased time spent indoors, home buyers are looking to invest in houses with features that create conducive and pleasant environments for working and living at home.
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