Over the past year, the Malaysian property market has suffered stagnant growth, no thanks to the COVID-19 pandemic, which has affected the economy and caused a decline in activities and growth. This has, in turn, resulted in a negative impact on the demand for houses.
Notwithstanding the adversity, the Malaysian property market is set for a rebound this year. Investors’ interest will be rekindled, though at a slow pace. According to Property Market Outlook, the second half of 2021 will see the interests of Malaysia’s property market investors improved again. This will be driven by certain factors, which include:
Attractive Interest Rates to Encourage Homeownership
One of the ways to spur an increase in new housing projects and the interest of investors in the Malaysian property market is to lower interest rates. As of November 2020, the Overnight Policy Rate (OPR) stood at 1.75%. This allows buyers to purchase properties at low-interest rates.
Lower interest rates also mean that the repayment of mortgage loans by buyers will become more affordable. With this initiative, there is high optimism that the Malaysian property market will experience a rebound.
Online Property Marketing
In Malaysia, there is a rise in online property marketing and technology. Given that the Internet has a high number of users, real estate marketers have taken to online media to reach a higher audience.
With property marketing technology on the rise, it bodes well for the resurgence of Malaysia’s property market.
At the end of 2020, the Malaysian government rolled out the 2021 budget. It had allocations for the housing industry geared to initiate its rebound.
Initiatives were created to ensure that Malaysian properties are affordable to buyers. In turn, this will cause an increase in economic activities in the industry.
Home Ownership Campaign (HOC)
In a move to boost buyers’ interest in the Malaysian property market this year, the Malaysian government has reintroduced the Home Ownership Campaign (HOC).
Buyers will be able to benefit from financial incentives and make their property ownership dream come true. Under this scheme, the government offers stamp duty exemptions for a certain period.
Affordable Housing for the Low-income Group
Do you know that low-income groups in Malaysia can also own a property in 2021? In the 2021 budget, the Malaysian government has made a provision allowing low-income groups to be property owners.
This program incentivizes property developers to make property purchases affordable for the low-income group. This initiative will accelerate economic activities in the industry.
Stamp Duty Exemption for Buyers of Abandoned Properties
This stamp duty exemption aims to encourage property buyers to take on uncompleted housing projects and accelerate their completion.
Homebuyers will be supported with financial incentives up to 2025. With this in place, there will be an increase in buying activities in the industry.
Rent-to-Own (RTO) Scheme
With the Rent-to-Own (RTO) Scheme with PR1MA, the Malaysia real estate industry is set for a rebound. This programme involves 5,000 PR1MA houses worth RM1 billion which are given out on rent with an option to be bought in the future.
It’s an initiative for first-time buyers. The Rent-to-Own (RTO) scheme is expected to encourage first-time buyers to own a house.
In a Nutshell
As 2021 goes on, the Malaysian economy is expected to get better starting from the second quarter as the vaccine becomes widely available. This increases buyer confidence and will lead to an increase in investments in various sectors of the economy such as the property market.
With the aforementioned initiatives and trends in place, there is a bright future for the property industry as the Malaysian property market will inevitably experience a rebound.
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