property

Soh: Upcoming fiscal policies will strengthen the property sector

KUALA LUMPUR: Industry players are optimistic that the upcoming fiscal policies expected to be announced in Budget 2025 will further strengthen the property sector, providing Malaysians with greater access to homeownership. 

Kenneth Soh, country manager for Malaysia at PropertyGuru and iProperty, noted the government's ongoing efforts to address housing affordability, financing, and sustainability.

"With Budget 2025 on the horizon, we see opportunities for additional measures to further enhance the property market and meet the evolving needs of Malaysian homebuyers," he said.

Soh emphasised that home affordability remains a primary concern for many Malaysians, particularly first-time buyers. He highlighted the importance of the government's commitment to affordable housing projects, such as the 1Malaysia Housing Programme (PR1MA) and Projek Perumahan Rakyat (PPR), in boosting the supply of homes in the affordable range.

According to the PropertyGuru Malaysia Consumer Sentiment Study H1 2024, PR1MA is the preferred choice for 23 per cent of respondents, particularly middle-income earners in their 30s. 

Meanwhile, 15 per cent favoured Rumah Selangorku, primarily among those married with children, and 14 per cent chose PPR, mostly from the low-income segment. Soh pointed out that these findings emphasise the necessity for tailored housing initiatives that cater to various demographic groups.

"We urge the government to continue collaborating with financial institutions to offer flexible loan packages, favourable interest rates, and periodically revise policies to align with evolving housing demands."

Soh also mentioned that sustainability has become a key focus in global development, with Malaysia being no exception.

He believes Budget 2025 should incorporate policies that promote green building practices, benefiting both the environment and homeowners. 

For instance, tax incentives or rebates for developers using energy-efficient designs and materials could accelerate the adoption of sustainable practices within the property sector.

For homeowners, incentives such as grants for solar panels, energy-efficient appliances, and water-saving devices can help reduce household expenses while fostering an eco-friendly lifestyle. 

Additionally, implementing green home certification programs that reward sustainable design would encourage developers and buyers to prioritise environmental considerations.

"In our commitment to ensuring equitable access to housing, we hope Budget 2025 continues focusing on initiatives aimed at underserved communities, including the low-to-middle income segment," he said.

Soh said that tailored assistance programs, such as targeted homeownership grants and low-cost housing projects, can play a transformative role in improving the lives of Malaysians, especially those in the B40 and lower middle-income brackets, while promoting social equity in homeownership.

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