Speedhome: House Buying Interest Low Rental Demand Up For Next 6 Months

Speedhome CEO has iterated that despite the Government removing the RPGT “many external factors will still affect real estate in the next six months. This includes possible increases in loan interest rates due to inflation, the rising cost of construction materials, and a downturn in the job market.”

Wong Whei Meng adds “Although the government has decided to provide an RM2 billion loan guarantee for people with unstable incomes, uncertain economic prospects and insufficient housing incentives, I believe that more people will also cancel or extend their housing purchase plans and continue to choose to rent houses.”

According to the online rental website, the demand for rental property has gone up since the recovery phase kicked in, this activity took place for the past two months in the Klang Valley. In addition, there are signs of returning students and workers from other states, which will contribute to the increase in demand for rental housing.

Wong also shared that “COVID-19 has badly impacted homeowners as they face higher housing vacancy rates and problematic tenants. Yet, the government policies rarely protect their interests, not to mention there is almost no rebate on the rental tax next year.

As a result, they suffer from loss of rental and other major losses. This has caused more landlords to be more stringent in renting or choosing their next potential tenant, broadening the conflict between tenants and homeowners.

As to give an avenue for young rental potentials, the traditional 2+1 deposits are seen as a burden to tenants, Wong is suggesting options to strengthen these young people. The high upfront rental deposit makes it difficult for the majority of young people to find a house. Thus why making renting more affordable is a small yet impactful step to empower youth relocating to the city.”

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