KUALA LUMPUR: The Real Estate and Housing Developers’ Association Malaysia (Rehda), which is cautiously optimistic about the outlook of the property sector, hopes for better improvement in the first half of 2021 (1H2021), provided there is no new community transmissions of COVID-19 in the country.
The expected sales will further improve in 1H21 in line with the economic recovery and the ongoing Home Ownership Campaign (HOC), as well as the low interest rate environment, its president, Datuk Soam Heng Choon said.
"With the ending of the moratorium, which falls today (Sept 30), I think financial institutions are giving targeted help both through extended moratoriums and also through restructuring and refinancing of loans for those buyers who still need assistance.
"This is because there may be people who are still unemployed or have had salary cuts in certain sectors of the economy -- that has not seen recovery, especially those in the hospitality sector,” he told a press conference on the upcoming HOC-Malaysia Property Expo (MAPEX) 2020-2021, here today.
The expo will be happening from Friday to Sunday (Oct 2-4) at the Mid Valley Exhibition Centre, here.
Feeling that Malaysia has done good job in tackling the COVID-19 pandemic, Soam said the scenario is projecting a positive picture to inspire the people to buy properties.
"Besides, people have realised that property is one of the better investment to protect them against depreciating currencies globally,” he said.
To make buying houses more affordable among certain groups, including those in the gig economy, Soam said discussions, including on the rent-to-own scheme is still on the table, but the government needs to play a bigger role and gets the financial institutions to come in.
"I think some banks out there are introducing step-up financing (scheme), meaning that in the first five years, you don't pay your principal, you only pay the interest. Only after five years you pay the principal plus interest,” he said.
He said Rehda is encouraged by the idea as by the end of the loan period in the step-up financing, the total quantum that is paid in principal plus interest is more or less the same as the conventional process.
On the HOC-MAPEX 2020, Rehda vice-president Datuk Tong Nguen Khoong said Rehda is not setting the target sales for this year’s event as it started only in August and does not expect the figures match the 2019 levels.
Thirty-five exhibitors, including 25 developers, three financial institutions, and six government agencies are taking part in the event. Admission is free to the public.
About 57,000 units of properties worth about RM37 billion were sold at the HOC-MAPEX 2019.
The HOC 2020-2021 is an initiative announced by Prime Minister Tan Sri Muhyiddin Yassin on June 5, 2020 under the Short-term Economic Recovery Plan (PENJANA) whereby local housebuyers will be exempted from stamp duties for the purchase of residential units between June 1, 2020 and May 31, 2021. - Bernama
