Stamp Duty Exemption Replaces HOC As Driver For Residential Property Recovery

The recovery in the residential property market continues into 2H2022 despite the expiry of the Home Ownership Campaign (HOC) on 31 December 2021, according to group managing director Knight Frank Malaysia, Sarkunan Subramaniam.

He said that the recently announced 100% stamp duty exemption for first-time homeowners of properties priced RM500,000 and below through the Keluarga Malaysia Home Ownership Initiative (i-MILIKI) will assist in propelling recovery as well.

He said this in a press release in conjunction with its Real Estate Highlights 1st half of 2022 released by Knight Frank, the independent property consultancy

Rounding off the outlook for the first half of 2022, Sarkunan concluded, “It is essential to foster resilience in real estate portfolios, especially to anticipate risk and minimise the disruption from all corners.

He said that the growing awareness and adoption of ESG frameworks in the residential market would help drive the value of sustainable real estate into the future.

“Developers should continue to be innovative in adapting to the headwinds by focusing more on design optimization and value engineering. Moving forward, new project launches will generally be focused on the M40 market, following pent-up demand from limited residential launches in recent years, as well as the gradual recovery in the general economy” Sarkunan said.

Meanwhile, Benjamin Tee, Managing Director, Knight Frank Property Hub added, “that the number of project completions for 2H2022 will also be notably higher (impending supply of about 5,303 units compared to 1H2022: circa 2,786 units) – likely attributed to earlier construction delays impacted by the various phases of containment measures.

Meanwhile, there were three notable project launches/previews in 1H2022, namely SWNK Houze, Skylon Residences, and One Eleven Menerung.”

On the outlook, Knight Frank said Malaysia’s transition to the endemic phase since 1 April 2022 is positive for the economy and real estate market.

It said that the country’s full-year GDP forecast of 5.3% to 6.3% remains on track although downside risks such as the on-going Russia-Ukraine conflict, rising global inflationary pressures, and high commodity prices, continue to weigh on economic recovery.

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