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Budget 2021: Beware of demand and supply mismatch of affordable housings - Savills (Malaysia)

PETALING JAYA (Nov 9): The government's effort in promoting public housing and affordable homes is laudable, but it is equally important to ensure the supply meets the actual market needs, said Savills (Malaysia) managing director Datuk Paul Khong.

Commenting on the Budget 2021 which was tabled on Nov 6, Khong noted that the initiative is good, but the government needs to study the location, sizes and pricings of the affordable homes and public housings, to ensure it could benefit the low- and middle-income groups.

Read other Budget 2021 news on EdgeProp.my/Budget2021

“The budget focuses on encouraging homeownership among the low- and middle-income groups, through the incentives of stamp duty exemptions for transfer and loan agreements for first- home buyers only for properties up to RM500,000, effective from Jan 1, 2021 to Dec 31, 2025.

“This incentive is seen as a continuous effort extended from Budget 2015, 2017 and 2019,” he told EdgeProp.my.

Nonetheless, Khong noted that while Budget 2021 has placed a big emphasis on the national economic recovery and the needs and welfare of the people, it does not offer sufficient stimulants to the general property market.  

“Apart from affordable housings, this budget did not provide any goodies to other property sectors. There is nothing for the mid- and high-end primary and secondary residential housing sectors, though these are also important market segments for the revival of the lacklustre property market,” he said.

Meanwhile, he noted that the infrastructure sector has been given a good shot in the arm due to its multiplier effect on the economy. 

“The High Speed Rail, RTS Project from Johor Bahru to Woodlands and the MRT 3 in Klang Valley have all been given the green light to proceed. This will benefit many development projects around the rail stations and the areas they are in."

The kick-off of the infrastructure projects will bring back some strong and renewed interests and will spur growth in these specific development corridors, added Khong.

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