It’s not easy for the government and other stakeholders when it comes to the current mismatch in the property market.
The people want to buy homes but they want it to be affordable and in a good location and at least have the kind of features they want.
The current unsold units point to a mismatch in demand versus supply which the government intends to correct by building 100,000 affordable units in 2019.
There are also calls to relax lending rules for some potential buyers so they can get the loans they need.
We should also note that the issue of banks willing to lend and borrowers qualifying for a loan are two different things altogether too.
As for the measures to boost the property market, here’s a roundup.
According to an article in the NST, Malaysia’s economic growth this year is expected to be slower compared to the last two years with a projected growth of 4.9% in 2018, 4.7% this year and 4.6% next year.
Based on the latest statistics available, the number of unsold residential properties rose 48.35% (30,115) from 20,304 units year-on-year while the total value increased 56.44% from RM12.49 billion.
The 2019 Budget introduced some measures to encourage residential property market growth.
Some of the measures are:
• Stamp duty exemption on the first RM300,000 on the sale and purchase agreement for first-time buyers priced RM500,000 and below.
• Six-month stamp duty exemption for first-time buyers for units between RM300,000-RM1 million.
• Peer-to-peer crowdfunding initiative to provide buyers an alternative source of funding.
• Building of affordable homes for the B40 group.
• Help from Bank Negara Malaysia for first-time buyers with an income of less than RM2,300 for homes priced below RM150,000 with an 3.5% interest.
• RM25 million by Cagamas to provide mortgage guarantees for first-time home buyers with incomes of less than RM5,000.
Boosting the property market is needed. Rent-to-own schemes will help those needing a home but lacking the funds for a downpayment. Secondary markets should also be included.
However, any move that makes the property market become more speculative, should be avoided at all costs.
Buyers who really do not qualify should not get the loans they applied for, period. Properties must be built in the areas and with the specs that buyers need.
The numerous unsold units in the market have revealed that many were built with the intention of achieving “quantity” alone.
Hopefully, when we look back at this situation in 2020, the 100,000 units would have sold out and not added to the number of existing unsold units in the market.
Source: Free Malaysia Today