Investments in new infrastructure under Budget 2021 will open up new neighbourhoods for housing that are currently too poorly served by transit, says Juwai IQI group chief executive officer Kashif Ansari.
Kashif said the investments in Klang Valley's Mass Rapid Transit Line 3, the Kuala Lumpur-Singapore high-speed rail, and Johor Bahru-Singapore Rapid Transit System will have multiplier effects as billions of ringgit would be injected into the economy and creating jobs.
He said the government has also focused on the policies that will best help first-time house buyers.
The critical property-specific measures are RM1.2 billion for low-income house buyers, the rent-to-own scheme, and stamp duty exemptions on both the instrument of transfer and loan agreements for first time home buyers with property worth up to RM 500,000.
Kashif said this is an excellent budget for first-time homebuyers and middle-income and lower-income Malaysians.
"Malaysia has a young, fast-growing urban population that wants the security of owning their own home. We are thrilled the government is making it easier for Malaysians of all incomes to own a home," he said in a statement.
Juwai IQI expects to see first-time house buyers increase their share of the market by up to five percentage points under Budget 2021.
Kashif said that would give them their highest market share on record.
First-time homebuyers currently account for 28 per cent of subsale and 35 per cent of new project purchases. That data comes from the firm's third-quarter (Q3) 2020 Malaysia Property Survey and Index.
Kashif said the higher homeownership rate will lead to greater wealth and financial security for young families in the decade to come.
He said based on the survey, the industry expects residential prices to fall 4.8 per cent over the next year, before climbing back up on strong economic growth to register a 10.6 per cent gain over the next 24 months.
"You might see a floor under falling average prices which limits the decline to three or four per cent," he said.