REHDA Institute Chairman Datuk Jeffrey Ng Tiong Lip thinks that residential prices in Malaysia is unlikely to rebound in 2H 2019, even though some property agents and real estate consultancies hold such a belief, reported The Star.
“The broad national economy will always have an impact on house prices. Look at the gross domestic product (GDP) for 2019, which is expected at 5.0 percent plus minus or it could actually go down. So, how can property prices for 2019 be better than the current year?”
Nevertheless, Ng said it’s possible that home prices could recover due to some potential catalysts. For instance, Putrajaya and Bank Negara Malaysia (BNM) would implement a funding scheme for purchasing houses that will help more people from various groups, not just first-timers and the bottom 40 percent income-earners.
“If the government were to introduce a broad-based approach, this may see the market move up in tandem, instead of measures targeted at a particular group,” he explained.
REHDA Malaysia President Datuk Soam Heng Choon also said that although some agents and real estate consultancies are upbeat that residential prices would increase, there are domestic and global issues which impact Malaysia’s economy, with ramifications to the local property market.
“The United States-China trade war will affect our GDP, there will be ripple effects,” he explained.
To help the property sector cope with such headwinds, federal and state authorities are introducing new measures to help the real estate market. These include Putrajaya exempting construction cost from the sales and service tax (SST).
“Definitely, there will be savings. We will see how much. More importantly, the focus today is affordable housing and there will be ample of these,” added Soam.