• Kedah/Perlis Real Estate and Housing Developers' Association Malaysia chairman Yeoh Su Guan said that currently, many in the M40 and bottom 40% income group (B40) are waiting for the Budget 2023 announcement before making any house purchases, as they hope that there will be something for buyers or developers to cushion the impact of the OPR for house purchases.

ALOR SETAR (Sept 15): The rise in the overnight policy rate (OPR) to 2.50% will likely influence Malaysians to reconsider purchasing houses, particularly the middle 40% income group (M40), who may have bank commitments such as personal loans.

Kedah/Perlis Real Estate and Housing Developers' Association Malaysia (Rehda) chairman Yeoh Su Guan said that currently, many in the M40 and bottom 40% income group (B40) are waiting for the Budget 2023 announcement before making any house purchases, as they hope that there will be something for buyers or developers to cushion the impact of the OPR for house purchases.

“The rise of the OPR to 2.50% will impact property developers because when instalment rates rise, it will cause house buyers to hesitate, especially the M40 group that have many other commitments,” he told reporters after the signing of a memorandum of understanding between Kedah/Perlis Rehda and Allo Technology Sdn Bhd, a fully-owned subsidiary of Tenaga Nasional Bhd (TNB), here today.

He added that the shortage of manpower, increased cost of building materials and the implementation of the minimum wage had made it hard for developers to recover in the current post-Covid-19 pandemic period.

“Many developers have been forced to delay their projects following these issues, and they are trying to figure out ways to complete their projects as soon as possible,” he said.

Bank Negara Malaysia recently raised the OPR by 25 basis points to 2.50%, the third consecutive increase this year.

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