Page 7 - Maybank Premier & Privilege Virtual Property Fair

VIEWS FROM THE EXPERTS

“How shall buyers act given the current market conditions and low interest
rate environment?”

The impact of COVID-19 on the property industry is tremendous and in
manifold, affecting all stakeholders within the industry. Homebuyers are not
exempt as their purchasing power may be reduced due to the pandemic and
the implementation of the Movement Control Order (MCO).

However, the Short-term Economic Recovery Plan or PENJANA announced by
DATO' IR SOAM HENG CHOON the Government in June 2020 has provided some reprieve for those who are
President, The Real Estate and in the market for a new home. In the stimulus package, the Government
Housing Developers' Association
(REHDA) Malaysia outlined three incentives specific to home ownership: the reintroduction of
Home Ownership Campaign (HOC) 2020-2021 until 31 May 2021, the
exemption of Real Property Gains Tax (RPGT) limited to the disposal of three
units of residential properties per individual until 31 December 2021 and
removal of Loan-to-Value (LTV) Ratio for residential units priced from
RM600,000 and above during HOC period.

We believe that despite the current subdued state of the market and
economy, this is the right time for potential homebuyers to make a purchase.
It is highly likely that interest rates will remain low for the foreseeable future
as long as COVID-19 still looms. Coupled with the PENJANA incentives and the
discounts offered by developers, buyers will end up saving a significant
amount of money that can be utilised for other purposes.

As the nation is handling the COVID-19 pandemic, REHDA hopes that the
Government will continue with its efforts to facilitate homeownership
amongst Malaysians, especially first-time buyers.

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