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PropertyGuru Market Index up 0.8 pct on improved buyer sentiment

Last update: 20/08/2019

KUALA LUMPUR, Aug 20 -- The PropertyGuru Market Index increased 0.8 per cent to 86.2 in the second quarter of this year from 85.4 in the previous quarter on improved buyer sentiment in the country due to government initiatives and intervention.

PropertyGuru International (Malaysia) Sdn Bhd country manager Sheldon Fernandez, in a statement, said the improved purchasing sentiment was due to initiatives such as the Home Ownership Campaign, stamp duty exemption, and Bank Negara Malaysia’s downward revision of its Overnight Policy Rate to three per cent.

These factors also contributed to upward ticks in asking prices for Kuala Lumpur, Penang and Selangor, he said, adding that however, they were not enough to overcome downward pressures in Johor, including a proposed ban on property sales to foreigners for selected projects in the third quarter of last year.

Meanwhile, real estate firm Jones Lang Wootton executive director Prem Kumar said B40 households continue to face challenges due to the continuing severe mismatch between property price levels and income levels.

He said it is imperative that the government, together with financial institutions, formulates a specific financing structure which goes far beyond existing schemes such as the rent-to-own programme.

“A well-structured platform, which takes into consideration medium to long-term property ownership sustainability aspects, would be essential in mitigating the crux of the problem.

“B40 households in the current environment are left entirely on their own and overwhelmed by complexities related to property purchases, especially with respect to securing funding within the existing structure of the real estate market,” he added.

-- BERNAMA