If the economic and health situation improves, so too will the property market, says PropertyGuru
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The second half of 2021 might see housebuyers’ interests improve again, driven by improved economic and public health climate, said PropertyGuru in their recent Property Market Outlook 2021 report.
The property portal sees that Malaysia’s economy will gradually improve next year, which will positively affect the property market as well, although it will be at a slower pace.
The property market is expected to improve in the second half of 2021, partly driven by an improved economic and public health climate. Strong existing demand for homeownership will likely be unlocked and we will see healthy growth in property transactional activity. However, the recovery is expected to be gradual as we acclimatise to a post-Covid reality.Sheldon Fernandez, PropertyGuru Malaysia Country Manager
They’ve also listed down five key factors that’ll likely drive demand for next year.
1. Conducive interest rates to encourage homeownership
PropertyGuru sees that the Overnight Policy Rate (OPR), which is at 1.75% as of November, allows buyers to get lower interest rates.
Lower interest rates will mean that monthly loan repayments are more affordable for housebuyers.
2. Continuation of mega infrastructure developments to create multiplier effects
The government allocating RM15 billion to revive several mega projects, such as the Mass Rapid Transit Line 3 (MRT3) in Klang Valley, Rapid Transit System from Johor Bahru to Woodlands, Singapore as well as Pan Borneo Highway across Sabah and Sarawak.
PropertyGuru said that these mega projects will complement upcoming residential and commercial developments within the vicinity and spur further development of rural areas resulting in a huge economic lift.
3. HOC continues to spur buyers’ interest
The reintroduction of the Home Ownership Campaign (HOC) by the government which offers a number of incentives to homebuyers is projected to play a more impactful role in resuscitating buyer interest for next year.
First-time homebuyers will also benefit from exemptions on stamp duty and loan financing limits above 70%, which available until May 2021.
4. Rise of creative online property marketing & property technology
PropertyGuru has noted that property players have accelerated efforts to market products and engage with buyers through online initiatives which bodes well with millennials.
5. Affordable housing for the B40 segment
The Budget 2021 revealed that the government will be focusing on affordable housing in the coming year, announcing several measures that will incentivise homeownership among the lower-income (B40) segment of the populace.
This measure will allow private developers to focus more on free-market housing while allowing the government to take the responsibility to provide more cohesive housing for the rakyat.
Unkempt in both stories and appearance, Hakim loves tech but tech left him on read, previously he used to write about tall buildings and unoccupied spaces that he can't afford, and legend has it that he still can't afford it to this day