In the second half of 2022 (H2 2022), Malaysia’s real estate market is projected to recover thanks to supporting policies and a promising economic outlook.
Property entrepreneur Michelle Chao, the founder of Pro Men Sdn Bhd, claimed that the government’s new measures are to support the real estate market. She also asserted that the controlled COVID infection rate in the nation is a favourable factor for industry sales .
“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,” said Chao.
She also said that purchases of properties valued between RM500,001 (USD 112,334) and RM1 million (USD 224,668) will be qualified for a 50 percent stamp duty rebate. Buyers of properties priced below RM500,000 (USD 112,334) will be able to enjoy a 100 percent MoT stamp duty exemption.
“We think this will help urban areas like Kuala Lumpur to rebound, but as it is dependent on household income, it could be a slower recovery for the suburban areas,” added Chao.
She pointed out that now is a good time for purchasers to take advantage of chances in the real estate market, particularly if the houses are in favourable locations and are being offered at a discount.
While Chao said that the recent increase in the overnight policy rate (OPR) would result in higher borrowing costs that would affect loan repayments, the slight increase is not anticipated to have a significant impact on buyers of homes valued below RM500,000 (USD 112,334).
Due to the recent increase in the cost of materials and labour, developers were providing enticing packages to lure customers and boost the market.