The outlook for the property sector in Malaysia would likely remained neutral in 2021, given the cautious sentiment following the Covid-19 pandemic.
PropertyGuru Malaysia country manager Sheldon Fernandez said the short-term sentiment takes into account the Conditional Movement Control Order (CMCO) and the rise in Covid-19 cases in the country.
"However, we do expect to see an increase in investment activity, given the current conducive environment with the Real Property Gains Tax (RPGT) exemption and so on.
"I think the market's recovery will probably take place in the second half of 2021, to return to the pre-Covid-19 level," he said in a webinar in conjunction with the 'Asia Virtual Property Expo Exclusive Media Preview' by PropertyGuru yesterday.
Under the Short-Term Economic Recovery Plan (Penjana), the government announced several tax incentives, including the RPGT exemption granted to Malaysian citizens upon disposal of a residential property from June 1, 2020 to December 31, 2021.
Additionally, Bank Negara Malaysia's cumulative reduction of the overnight policy rate (OPR) to a historical low of 1.75 per cent would reduce effective interest rates for home loans from majority of banks to about three per cent, depending on the loan amount.
PropertyGuru will be hosting the Asia Virtual Property Expo (AVPE), the largest multi-market virtual property expo from November 11 to December 12, 2020.
The month-long virtual expo would leverage on the group's regional presence to showcase over 300 projects from Malaysia, Singapore, Indonesia, Thailand, Vietnam, Cambodia, the Philippines, Myanmar, Australia and the United Kingdom.
Fernandez said according to the PropertyGuru Malaysia Consumer Sentiment Survey, 81 per cent of Malaysians still want to own a home by the end of 2021.
"Through the virtual expo, we hope to make property transactions borderless," he said.