AMID a pandemic-stricken economy, Malaysia’s property market has continued to show signs of resilience with the number of transaction decline coming in less-than-anticipated, partly driven by various measures and initiatives from the government.
According to the PropertyGuru Malaysia Consumer Sentiment Study, 57% of its respondents expressed their intention to own a home by the end-2021 while one in six respondents plan to postpone their purchasing plans indefinitely.
“With many Malaysians aspiring to own their own home next year, we have identified five key trends that will help facilitate the uptake.
“They range from incentives to enhance the macroeconomic environment, measures by the government and property developers as well as uptake of digitalisation within the property industry,” PropertyGuru Malaysia country manager Sheldon Fernandez pointed out.
Below are the five key trends earmarked by PropertyGuru as driving forces for the property market:
- Conducive interest rates to encourage homeownership: The Monetary Policy Committee (MPC) of BNM kept the overnight policy rate (OPR) at 1.75% in its most recent review in November citing significant improvement in economic activity during 3Q 2020.
- Continuation of mega infrastructure developments to create multiplier effects: The Budget 2021 which was tabled at parliament in November has seen the Government allocating RM15 bil to revive and ensure the continuity of several mega projects such as the Mass Rapid Transit Line 3 (MRT3) in Klang Valley, the Rapid Transit System from Johor Bahru to Woodlands as well as Pan Borneo Highway across Sabah and Sarawak.
- Home Ownership Campaign (HOC) continues to spur buyers’ interest: The re-introduction of the government-initiated campaign has proved to be an effective measure to boost the property market by offering a number of incentives to homebuyers. The campaign is expected to remain in play for much of the first half of 2021.
- Property technology on the rise: One positive outcome of a pandemic-challenged property industry is increased innovation and a greater focus on digital solutions. Key property players have accelerated the efforts to market products by engaging with buyers through online initiatives. This bodes well with millennials who are well-versed with e-commerce habits and making up a large segment of the house buying market.
- Affordable housing for the B40 segment: The Budget 2021 also revealed that the Government will be focusing on affordable housing in the coming year. This follows announcement of several measures that will incentivise homeownership among the lower-income segment of the populace. – Dec 15, 2020