Chester News | 新闻
Residential property prices to increase next year?
The selling prices of residential properties in the country are anticipated to rise next year, given that the cost of doing business has increased by an average of 17 per cent in the first half of 2022 (1H2022).
The increasing cost of doing business will affect home prices going forward, according to Datuk NK Tong, president of the Real Estate and Housing Developers' Association Malaysia (Rehda).
"The majority of developers have offered some clues as to how much more expensive their new launches' selling prices would be. It is not a low amount," Tong told NST Property.
Datuk NK Tong, president of the Real Estate and Housing Developers' Association Malaysia.
According to Previndran, the Budget 2023 measures overall will benefit the real estate market, notably the housing sector.
He said that the increase in stamp duty exemption for first-time homebuyers for residential properties priced above RM500,000 to RM1 million and the extension of the exemption until 2025 for properties priced below RM500,000 are expected to increase homeownership among first-time homebuyers and subsequently increase real estate transactions.
"Notwithstanding, extending the stamp duty exemption to second home purchases would aid in reducing unsold inventories and accelerate the recovery of the housing market," he said.
Further, Previndran said that measures like the RM3 billion allocation for Syarikat Jaminan Kredit Perumahan Bhd for 12,000 borrowers and the RM367 million allocation for new Program Perumahan Rakyat projects in Terengganu and Perlis as well as the RM358 million allocation for Program Rumah Mesra Rakyat will benefit and increase homeownership among the lower income group and gig economy workers.
The tourism and hospitality sectors are also set to benefit from funding allocated under Bank Negara Malaysia which includes RM500 million allocation under the BNM Tourism Financing Fund and a total of RM10 billion in funding for SMEs in the automation, digitalisation, tourism, and agriculture sectors.
CBRE|WTW Malaysia managing director Foo Gee Jen said public transportation and significant infrastructure development projects will have the biggest influence on the real estate market.
This includes developments in Johor like Petronas' US$27 billion investment in Kompleks Petroleum Pengerang and the RM510 million budgeted to upgrade the Senai Desaru Expressway's road infrastructure to Pengerang.
According to Foo, the introduction of 5G in areas with large population densities will also have a favourable effect on the real estate market.
"Leading up to Budget 2023, there were high expectations and interesting forecasts made by industry leaders. However, the property sector made a relatively neutral appearance as the general economical budgeting steered in a different direction.
"Despite this unexpecting turn of events, the budget this year brought upon some impactful changes, some of which focused on green technology, mental health, and commute infrastructure. Initiatives as such will put the country far ahead as these are factors that will play a crucial role in developing our people in the long run," Foo said.
Foo asserted that a closer examination of the real estate market reveals that while there have been no game-changing initiatives as a result of the industry's neutral attitudes, the government's announcement that 2023 will mark the year Malaysians bring cautious normalcy to their spending will have a significant positive impact.