KUALA LUMPUR: The domestic property market will likely see gradual improvements in buying sentiment, in line with the generally improved outlook for the Malaysian economy, which is anticipated to perform better this year.
PropertyGuru Malaysia country manager Sheldon Fernandez said several other government initiatives introduced in the Budget 2022 would also help to spur the market for home buyers and investors.
These include the RM1.5 billion allocation for low-cost housing projects, the additional RM2 billion for the Housing Credit Guarantee Scheme, and the removal of Real Property Gains Tax (RPGT) on homes sold from the sixth year onwards.
He said over the past two years, the Home Ownership Campaign (HOC) has dramatically supported the stability of the property market, along with other government-driven initiatives such as the moratorium on loan repayments and the 1.75 per cent Overnight Policy Rate (OPR).
However, the extension of the Home Ownership Campaign (HOC) programme did not materialise despite market watchers pointing out that it would be a vital tool to reinvigorate the market.
"Overall, we will likely see gradual improvements in the market environment in the first half (1H) of this year, before it begins to pick up the pace in the second half (2H) 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," he told The New Straits Times.
Sheldon said based on the Property Market Outlook 2022 report, the market is slowly
stabilising in 2022, in line with a better-improved outlook for the Malaysian economy as the country moves into the endemic phase.
He said Malaysians are still on the lookout for property despite the prolonged pandemic since 2020, with four out of five Malaysians, surveyed still having intentions to buy properties in the
future, according to PropertyGuru's Consumer Sentiment Study for H2 2021.
Sheldon further said that all indicators point to an ideal time for buyers to get into 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.
"A thorough examination is required to ensure home buyers have the capacity and confidence to take on an added long-term financial burden," he said.
When asked to comment on the recent flash flood and will homebuyers now look for more high-ground landed properties, Sheldon said typically, homes located on low-lying land near coastal areas are more prone to flooding, especially on the east coast of Peninsular Malaysia.
With the monsoon season between November and January, more areas are at risk of flooding as well.
This also poses a threat to houses and buildings built on hills and slopes that might be at risk of collapse from soil erosion unless soil retention works have been put in place.
"While the location has always been one of the key factors of consideration for home seekers in Malaysia - and more people would increasingly prioritise this factor due to recent events - nobody foresees their home to be struck by a flood or any natural disaster.
"At the end of the day, it's important that we have the right disaster management plan and emergency response in place to address these problems so that we are better prepared," he said.