What does the year ahead look like for Malaysia's property market?

Research conducted by Knight Frank Malaysia in their Real Estate Highlights 2nd Half of 2020 showed an increase of strength within the industry, post-MCO. This is because developers have been reporting an increase in their number of bookings.

What is stimulating this further growth in the industry?

The Home Ownership Campaign (HOC) and other helpful introductions in the form of stimulus packages have helped to strengthen the real estate industry. The current environment is one with high demand and low-interest rates for housing-related transactions.

What does this mean for me as someone that is part of the real estate industry?

The increase in property demand and overall transactions makes for an environment where making a profit will be easier and better over the coming months ahead. The market is also expected to strengthen further with the eventual rollout of the COVID-19 vaccine.

How does this affect me, a potential house buyer?

The Home Ownership Campaign (HOC)'s extension creates a market with attractive offers for you. Properties listed under the scheme are subject to a minimum discount of 10%, as well as stamp duty exemptions for properties worth up to RM2.5mil.

What falls under the House Ownership Campaign (HOC)?

Apart from the stamp duty exemptions and discounts offered, this is a campaign that is eligible for:

• Registered properties that are listed by developers within the scheme.
• Only those who purchase properties with the purpose of residing in it
• Purchaser and co-purchasers must be Malaysian Citizens.
• To be eligible for these benefits, the Sales and Purchase Agreement (SPA) must be stamped between the 1st of June 2020 and the 31st of May 2021.

Other highlights from the research also include:

• Penang is currently ranked first in foreign-direct-investment (FDI) of all Malaysian states at RM15 billion.
• There is an oversupply of office buildings in Klang Valley, but there is an opportunity to offer co-working spaces and adapt to the new norm of flexible work arrangements.
• The industrial market in Klang Valley is expected to redevelop dated assets and upgrade existing buildings, instead of investing in large-scale new developments.

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