THE apparent glut in the Malaysian property market would likely see a respite in March with the injection of stimulus and incentives, an international real estate federation said.
The Southeast Asian country’s property market has been making headlines over the so-called glut and analysts noted that developers were partly to blame for building properties that were not aligned with the demands.
This has led to RM19.54 billion (US$4.7 billion) in unsold homes last year, of which most of them involved units priced over RM500,000 (US$120,481) and above per unit.
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However, Michael Geh, of Fiabci Malaysia, said this property downturn in the Southeast Asian country could be reversed once the newly-created National Housing Policy takes effect and when implementors announced their findings and recommendations.
“There will be announcements of affordable housing, actions by Bank Negara Malaysia to stimulate the market and other incentives that are still under discussion between the industry and the government,” he said, as quoted by the Malay Mail.
The country recorded a dismal performance in 2018, especially in the final quarter of the year, but the announcements would stimulate the property market, he said referring to a recent report in the Financial Times entitled “Malaysians unimpressed by steps to boost housing market”.
“The report is too premature and it was based on outdated 2018 data without in-depth analysis of the ongoing plans by the current government,” he said.
The FT report found Malaysian consumers were hesitant to buy property towards the end of 2018 even though the government introduced measures to encourage home ownership.
However, Geh said the measures announced in the annual Budget last year would take full effect this year.
“They used historical figures but referred to Budget 2019, in which the findings and more measures under the new national housing policy will only be fully revealed in March,” he said.
A host of analysts believed property prices were expected to remain stagnant this year but Geh believes this may not be the case.
“It may not be true for the whole of 2019, especially with the incentives that the government is planning to introduce,” he said.
Geh said the Bank Negara Malaysia (central bank), the Housing and Local Government Ministry and the Finance Ministry were holding regular engagements to come up with “goodies” for the industry and home buyers.
“The new government is taking extraordinary steps in a tenacious manner that will help spur both the primary and secondary market of the property industry this year,” he said.