KUALA LUMPUR: The stamp duty waiver announcement made by the government recently will have minimal impact on the overall property market.
RHB Research analyst Loong Kok Wen said ongoing market headwinds such as rising inflationary pressure and weakening of the ringgit continued to dampen market sentiment.
"Although the recent announcement may help to slightly spur demand, especially for properties priced below RM500,000, the impact to the overall property market will be fairly minimal.
"We think prevailing concerns on macroeconomic headwinds, including rising inflationary pressure and weakening of the ringgit, will deter demand for property over the next six months.
"Coupled with the expectation of higher interest rates ahead, many potential property buyers will likely hold back their purchases over the near term," she said.
The firm noted that some of the developers were still offering stamp duty waiver for certain products as a continuation of the Home Ownership Campaign in order to stimulate demand.
Prime Minister Datuk Seri Ismail Sabri announced that stamp duty exemption would be offered to first-time home buyers for property priced up to RM500,000, and 50 per cent discount on stamp duty for those buying property priced from RM500,000 to RM1 million.
The exemption is for sales and purchase agreements that are signed between June 1, 2022 and Dec 2023.
This exemption is similar to one of the features in the recent HOC that ended in Dec 2021, whereby stamp duty waiver was offered for properties priced up to RM1 million.
"Although demand-driven incentive is now reintroduced, cost pressure remains a big concern for developers as building material prices remain at high levels, while labour shortage issues have yet to be resolved.
"Therefore, we foresee potential downside risk to developers' earnings in the coming quarters," she said.
RHB Research maintained its "Neutral" all on the property sector with Matrix Concepts Holdings Bhd and IOI Properties Bhd as its top picks.