Transactions & Demand for Real Estate Market Expected to Rebound Sooner
Transactions and demand for the country’s real estate market are expected to rebound quicker following the introduction of Home Ownership Campaign (HOC) under the National Economic Recovery Plan (PENJANA) unveiled by Prime Minister Tan Sri Muhyiddin Yassin.
Property analyst Dr Azizul Azli Ahmad said the government’s move was to encourage people to invest their savings in property especially among young people and those who wanted to own their first home.
“As we have seen throughout the implementation of the Movement Control Order (MCO), financing for real estate market has slowed down and has left industry players such as architects, real estate agents and valuers have lost their income.
“However, I am confident that in the near future the real estate market will recover as there is a strong buyers’ confidence in the sector,” he told Bernama.
Azizul Azli also said the incentive would also help reduce the problem of dumping of unsold properties in major cities in Johor, Selangor and Penang.
At the same time, he also advised the public to exercise caution when planning to buy property as it was feared that they would be deceived by developers who took advantage of the incentives introduced.
“There could be unscrupulous developers who will raise prices too high, so it is advisable to always check and compare the house price with the market value in the area, either with a bank or registered real estate agent, before buying,” he said.
Meanwhile, Muslim Real Estate Consultants Association (PEHAM) president Ishak Ismail said the Real Property Gains Tax exemption incentive was a positive move to those affected by COVID-19.
“This is because some people have been adversely affected by the COVID-19 such as job loss and if they have to dispose of the property, at least the profit earned can be used immediately to cover their living expenses,” he said.