Government initiatives introduced throughout the course of the pandemic key to the industry’s progress
With economies opening up, booster vaccinations on full drive, resumption of businesses across most sectors, and the public starting to embrace the new normal, PropertyGuru Malaysia’s Country Manager Sheldon Fernandez told The Straits Times that they expect better performance for the local real estate market this year as buyer’s sentiment progressively improves.
Government schemes key to progress
The initiatives proposed by the government in the Budget 2022 – namely the allotment of MYR1.5 billion (USD358.7 million) for low-cost residential projects, the increase of MYR2 billion on the Housing Credit Guarantee Scheme, and the dismissal of Real Property Gains Tax on houses sold from the sixth year onwards – will help encourage investors and homebuyers.
Other government measures introduced throughout the past couple of years, such as the 1.75 percent Overnight Policy Rate, the moratorium on loan repayments, the Home Ownership Campaign, have been instrumental in maintaining the stability of the industry.
“Overall, we will likely see gradual improvements in the market environment in the first half of this year, before it begins to pick up the pace in the second half of 2022. Even as we move forward with a more optimistic outlook, it is important to note that sustained improvement in consumer confidence will continue to be linked to positive or negative developments on the Covid-19 front,” highlighted Sheldon.
Moreover, the new components added to the People’s Housing Programme (PPR) by the National Affordable Housing Council will also aid in the recovery of the sector, as well as in helping achieve the Liveable Malaysia agenda, reported The Malaysian Reserve.
The new PPRs to be constructed will consider better connectivity and internet access, proximity to public transportation, and a more cost-effective, comfortable design
During a meeting with the National Recovery Council where the enforcement of 500,000 affordable housing units was discussed, Prime Minister (PM) Datuk Seri Ismail Sabri Yaakob said: “The government is committed to ensuring adequate, quality, and affordable homes to meet the needs of the growing population. Therefore, the Housing and Local Government Ministry (KPKT) has introduced the Home Ownership Programme (Hope) to see a more comprehensive ecosystem in the provision of housing, housing financing, and programmes for Malaysian families.”
Opportune time for Malaysian buyers
With these government schemes in place and as the country slowly transitions into the endemic stage, Sheldon further shared Malaysian’s clear intent to purchase homes, citing PropertyGuru’s Consumer Sentiment Study for 2022.
In their survey, four out of five participants reveal their plans to buy properties in the future. He also pointed out that the current environment is the ideal time for buyers to enter the market.
“It is an opportune moment to take advantage of low prices, while they are on an upward trend and benefit from prevailing low-interest rates while they last.”
Developers gearing up for recovery
As buyer’s sentiment improves, leading developers of the 8th annual PropertyGuru Asia Property Awards (Malaysia) have gone into full gear, steadfast in their pursuit to produce and provide premium quality developments for all walks of life.
Best Developer and Best Developer (Central Malaysia) Winner Tropicana Corporation Berhad, for instance, have recently partnered with PowerChina International Group Limited to build a 596-acre mega masterplanned township development in Genting Highlands, according to PropertyGuru Malaysia.
Meanwhile, Datuk Mohamad Haslah Mohamad Amin, the chairman at Matrix Concepts Holdings Berhad (Best Township Developer winner), told The Star that they are in a “sweet spot for catering to the mass market’s needs.”
“Based on our booking trends, we are seeing strong demand for our affordable landed homes and are looking to satiate this with more launches going forward,” he added.
OCR Group Berhad (Best Lifestyle Developer winner), on the other hand, recently announced its strategic partnership with Acotec Sdn Bhd to utilise Acotec’s Industrialised Building System technology throughout the construction of OCR’s PRIYA Kuantan affordable housing project.
As part of the Group’s sustainability initiative, the new method will help reduce construction time, as well as guarantee better craftsmanship and finishing quality. The use of their new partner’s wall panels also means less reliance on foreign labour, lower cost structure, and higher quality affordable homes.
Know of any other exceptional residential, commercial, or industrial projects in Malaysia? Nominate them for the 9th PropertyGuru Asia Awards Malaysia in partnership with iProperty.com.my on or before 30 June 2022. To know more, visit AsiaPropertyAwards.com/Award/Malaysia/.
Gynen Kyra Toriano, Digital Content Manager at PropertyGuru, wrote this article. For more information, email: [email protected].
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