Malaysia Association of Property Consumers commenting on the recent budget announcements for the property sector sees the move to relax the requirements under the Malaysia My Second Home (MM2H) program will not only boost the property market but also attract and retain quality foreign talents to and in Malaysia.
Dato’s Sr Rosli Atan, President of MAPC also weighed on the initiative to strengthen PNB with a corporate restructuring and injection of strategic government-owned land in Kuala Lumpur, while welcoming the initiative, it is of the opinion that the development of this strategic land should be based on ‘highest and best use’ approach rather than just wholesale for housing projects. This is to ensure that maximum returns can be achieved for these institutions to then distribute back the benefits to retail Bumiputera investors. A proper market study should be carried out first by independent professional property consultants.
The initiative to promote Malaysia as a hub for the e-sports industry is a forward-looking and refreshing initiative that MAPC sees as a new catalyst for the commercial property sector. However, instead of building new hubs under this initiative, repurposing of existing underutilised commercial properties such as shopping malls will help to revive these underperforming properties which have been on the rise due to the Covid-19 pandemic, some of which have even been vacated and abandoned by tenants.
In the view of MAPC, the formation of a special task force under Kementerian Pembangunan Kerajaan Tempatan (KPKT) to resolve the issue of abandoned projects is a very important initiative as it can revive the property market in terms of better supply. However, there is another side of the equation which is demand. These projects were abandoned in the first place due to financial problems including lack of demand from purchasers for a variety of reasons. As such, the Government should also spur demand from potential purchasers through incentives that have been given before under the Home Ownership Campaign (HOC) as well as others. Proper market study and marketing strategies should also be undertaken by independent property consultants in reviving these projects. Otherwise, even if they are revived, there will still be a lack of buyers and the projects will go back into financial problems.
Eligibility to obtain end-financing from the banks is one of the reasons that can affect demand from potential purchasers. MAPC proposes the Government, via Bank Negara Malaysia, to come up with solutions to this issue which is hindering the ability of the public to own houses. The housing credit guarantee scheme is just a start but requires more wide-reaching improvements.
While the move to charge a flat rate stamp duty of 4% on property transactions by foreigners is seen as a control measure on house prices, MAPC is of the opinion that this issue is one of a complex combination of several factors. It is definitely not due to the alleged over- valuation by professional valuers. In fact, the valuation profession has the right expertise and knowledge to offer some viable solutions and MAPC urges the Government to consider professional valuers as key participants in its consultative sessions with stakeholders and industry players.
