KUALA LUMPUR: Affordability-related issues remained a central theme in the property sector heading into Budget 2025, although some proposals put forth are not new, said CIMB Securities Sdn Bhd today.
In a research note, the brokerage has identified two high-impact proposals that if implemented, could reinvigorate the sector, namely the home ownership campaign (HOC) and the Madani deposit scheme.
It said the return of the highly popular HOC, coupled with the right incentives, could prod a further reduction in the number of unsold properties.
"By lowering the initial financial barrier, the latter (Madani Deposit Scheme) would bolster the upfront affordability of first-time homebuyers, especially among the B40 and M40 segments.
"Likewise, the South China Morning Post reported that the revamped Malaysia My Second Home (MM2H) visa scheme has drawn fresh interest from China's wealthy youth, although it remains to be seen if this would translate into real applications under this programme," CIMB Securities said.
The research note highlighted the latest aspirations of stakeholders in the property sector in the lead-up to Budget 2025 to be tabled on Oct 18 2024.
Representing the developers, CIMB Securities said the Real Estate and Housing Developers Association (Rehda) Malaysia hopes that Budget 2025 will provide more incentives for developers to continue building affordable housing.
"Through a survey that attracted responses from 162 out of its over 1,500 members, Rehda Malaysia recommends a reduction in development charges, lower land conversion premium and exemption from utility contribution charges," the brokerage said.
Towards this end, a detailed study should be done to ascertain affordable housing supply and demand to determine prices and appropriate locations, CIMB Securities said.
Rheda Malaysia also expects tax reduction incentives for developers to promote green buildings.
"Developers require better tax incentives to offset the increased cost of adopting the environmental, social and governance agenda," it added.
CIMB Securities retained its neutral stance on the property sector.