It has been exactly 6 months since several tax exemptions and incentives have been announced under PENJANA to combat the affects of the pandemic and spur demand in the Malaysian property market.
The main initiatives include:
- The reintroduction of the Home Ownership Campaign
- Real Property Gains Tax exemptions
- Removal of the 70% financing limit for your 3rd housing loan
These initiatives were designed to make purchasing a home easier. However, despite knowing that they will expire in 2021, potential home buyers are still wary considering the current uncertain situation. In light of this, Maybank invited speakers to answer burning questions at their 2020 Premier & Privilege Virtual Property Fair. The panellist included speakers from MIEA, REHDA and Henry Butcher Malaysia.
As well as a Q&A, Maybank partnered with eight of the country’s top developers for the Virtual Property Fair to showcase over 60 property developments across the nation, comprising both of residential and commercial. Attractive and promotional deals were offered to the guests of the fair to help them own their own dream property.
The financial provider also introduced a unique mortgage loan, Maybank Maxihome Ezy which allows you to postpone principal payments for the first 5 years so that you only have to pay interest charges. With lower monthly instalments, you will have extra cash flow for 5 years.
Overall Property Outlook for Malaysia
Mr Soma Sundram Krisnaswamy, Chief Executive Officer of Malaysian Institute of Estate Agents (MIEA)
What’s in his crystal ball?
- Life goes on
- Market went to ‘Ground’ zero from 18th March to 4th May 2020
“Things are only going to get better."
- Certain market sectors will strengthen
- Sure signs after second quarter of 2021
Also in his crystal ball of the performing sectors, Sundram shared that;
- there is a big demand for the industrial sector including large warehouses and industrial land.
- The residential sector has improved and end users are looking to buy
- New projects are picking up with HOC and Government incentives
How Should Property Buyers React to the Low Interest Rate Environment?
Dato’ Ir Soam Heng Choon, President of the Real Estate and Housing Developers’ Association (REHDA) Malaysia
Included in his talk was his insight on what buyers should do, what properties that buyers should look at as well as key areas to consider to make a better decision when buying.
Virtual Property Fair Panel
“Any recommendations on how the government can assist the secondary market?”
- Sundram suggested a zero rise in RPGT and stagger the loans to allow more people to qualify for housing loans
“What do you expect will happen to the market after the loan moratorium will end?”
- Dato Soam believes that there will still be many incentives and initiatives that will help homebuyers and therefore the market will not go down
“What is your take on foreign homeownership going forward?”
- Mr Tang Chee Meng, Chief Operating Officer of Henry Butcher Malaysia said that foreign homeownership in Malaysia is not at an alarming figure, around less than 5%.
For a deeper insight, watch the full video here.