2023 property news recap

• Throughout 2023, EdgeProp has delivered numerous industry stories to ensure you stay well-versed and empowered in navigating the property landscape. Dive into the highlights below as we bid farewell to the passing year.

Good news for property buyers 

OPR remains at 3%

Bank Negara Malaysia (BNM) decided to keep the overnight policy rate (OPR) unchanged at 3% during its Monetary Policy Committee (MPC) meeting in November 2023. This was the third consecutive time in which the MPC has chosen to maintain the OPR at its current level. The only rate hike occurred on May 3, when BNM unexpectedly raised the OPR by 25 basis points, bringing it from 2.75% to 3%. 

Extra savings for first-time homebuyers

The Ministry of Finance (MOF) has announced the government's decision to extend the stamp duty exemption for first-time homebuyers. Under this initiative, first-time homebuyers are eligible for a 100% stamp duty exemption when purchasing homes priced not more than RM500,000, while those buying houses between RM500,001 and RM1 million will receive a 75% stamp duty exemption. The extended stamp duty treatment is applicable for sale and purchase agreements completed from June 1, 2022 to Dec 31, 2023.

No more documentation fees for housing loans

Local banks have abolished the documentation fee for housing loan borrowings, following a directive from BNM issued as a "notice of cessation to all banks." Prior to this directive, banks used to impose a documentation fee ranging from RM100 to RM600 for housing loan borrowings.

EPF Account 2 as collateral for bank loans gets green light

In March, the government approved the use of savings in Account 2 of the Employees Provident Fund (EPF) as collateral for bank loans to assist contributors during challenging times. Eligible EPF members aged 40 and above can apply for personal financing from banks, leveraging their Account 2 balance, starting from April 7 through the pension fund's Account 2 Support Facility (FSA2) programme.

However, borrowers participating in the FSA2 programme face the risk of being blacklisted if they fail to meet the repayment obligations within the stipulated period.

Property and economic initiatives through Budget 2024

The Budget 2024 that was presented by Prime Minister Datuk Seri Anwar Ibrahim (pictured) on Oct 13 saw the introduction of a fixed stamp duty fee on property transactions, developer incentives for abandoned properties, increased allocation for Housing Credit Guarantee Scheme, lower en bloc sale threshold, and easing conditions of MM2H, to name a few in terms of the property sector.

Apart from that, the government granted an additional allocation for the New Industrial Master Plan 2030 (NIMP). There is also a provision of RM20 million to Think City to rejuvenate downtown KL as a creative capital. Furthermore, the Penang light rail transit (LRT) system and five previously shelved LRT3 stations have been reinstated. Additionally, the government is encouraging the use of electric motorcycles for individuals with annual incomes of RM120,000 or lower, with rebates available through the Electric Motorcycle Use Promotion Scheme.   

START your journey to a dream home

EdgeProp introduced START, a revolutionary homebuyer campaign in June (pictured). It is designed not only to provide comprehensive support throughout the homebuying journey, but also offers enticing benefits at every stage of the homebuying process as a reward for the participants. 

In November, a START member successfully attained his homeownership goals with The Atera, unlocking two sets of START rewards. The rewards include cash vouchers to redeem products and services from Livspace, AFFIN, TIME, Samsung, StashAway, JBL, Sofa-X, Kuvings and Handibee worth up to RM18,888. He also received a free personal accident coverage worth RM10,000 from Allianz.   

EdgeProp expands collaboration with real estate firms

In 2023, EdgeProp expanded its collaboration with real estate agencies by inking an additional 22 deals: Renzo Realty, Vigor Properties, Maxland Real Estate Agency, Maxxan Realty, Worldtree Properties, Glow Estates, Polygon Properties, Cornerstone Xstate, Landsworth Properties, EUM Realty, Alam Harta Realty, Ceiloz Realty, Oriental Real Estate, Crystal Realtors, Tech Real Estate, Firdaus & Associates, Megaharta Real Estate, One Maker Realty, Homefield Real Estate, Era Realtors, RT Success Realty, and E Trend Realty.

Through these partnerships, the agencies will have access to EdgeProp’s latest cutting-edge data tools, empowering both the firms and their clients to make more informed decisions when purchasing properties.

Developer updates

Malaysia’s tycoon declared bankrupt?

In April, news of Tan Sri Lee Kim Yew (pictured) who was declared bankrupt by the Shah Alam High Court went viral. In response, Lee “claimed he did not file for bankruptcy, and is still far from insolvency”. In a press conference, he stated that the matter was escalated by Patrick Healy, a former officer of a now wound-up US-based Club Excellence Inc, who pursued legal action by bringing the issue to the US arbitration court, seeking RM3 million from Lee. 

Change of helms 

Gamuda appointed the former auditor general Tan Sri Ambrin Buang as its new chairman; Former Armed Forces Fund Board (LTAT) chairman Tan Sri Mohd Anwar Mohd Nor assumed the role of Country Heights chairman, succeeding founder Tan Sri Lee Kim Yew; Hafizuddin Sulaiman was appointed as UEM Sunrise’s new chief financial officer; Tan Wee Bee is Sunsuria’s new group chief executive officer; Rehda chairman Datuk Ng Tiong Lip was appointed as a non-executive director at CapitaLand; and Country Heights deputy managing director Dr Ricky Yip Chun Mun was promoted to acting managing director.

Meanwhile, those who resigned were TSR Capital chairman Mohamad Noor Abdul Rahim, Country Heights chief financial officer Yong Sie Hoong, and Gamuda deputy group managing director Mohammed Rashdan. 

KPKT highlights

KPKT renamed (again)

The Local Government Development Ministry recently changed its name back to the Housing and Local Government Ministry (KPKT), which was its former name prior to the Unity Government’s takeover in December last year. It said the name was amended based on a decision made during the Cabinet meeting on Dec 13, and it will be officially gazetted under the Ministerial Functions Act 1969. 

KPKT advocates urban redevelopment, suggests 75% consent threshold for en-bloc sales

KPKT said the urban renewal implementation guidelines had been approved by the cabinet in September, with plans to table the new Urban Renewal Act next year. Focusing on four key components: urban redevelopment, urban rejuvenation, urban regeneration, and urban conservation, the guidelines serve as a reference for local authorities, developers, and other stakeholders involved in redevelopment or development planning.  

Currently, the existing Act mandates 100% consent from residents for implementing redevelopment plans, which is deemed impractical according to KPKT. Therefore, the ministry is proposing a 75% threshold for residents' approval in en-bloc sales for redevelopment projects.

Klang Valley train woes

Earlier this year, the Ampang Light Rail Transit (LRT) line experienced service disruption due to a kinked track alignment near the Bandaraya LRT Station. Consequently, DBKL issued a stop-work order for the Menara SOHO project as a safety measure. The Ampang-Sri Petaling LRT line is anticipated to resume operations on Feb 29 next year, following the completion of comprehensive repair work on the flyover and track structure near the Bandaraya LRT station. 

Then in March, the Kelana Jaya LRT line faced a disruption caused by a blackout affecting five underground stations, stretching from the Ampang Park LRT station to the Masjid Jamek LRT station. This blackout led to a breakdown in facilities such as elevators, lifts, escalators, and lighting. However, services at the affected stations were restored a few hours later.

In November, Keretapi Tanah Melayu's (KTM) Komuter service and Electric Train Service (ETS) experienced delays ranging from 15 to 30 minutes from the original schedule caused by a derailed train. The incident took place during track upgrade work at KL Sentral involving the project's engineering train.

Also in November, Rapid KL refuted a viral post claiming an explosion with a Mass Rail Transit (MRT) Kajang Line train. The company clarified that the incident merely involved the sound of a spark from a specific train, which was promptly taken out of service at the Taman Mutiara station.

Just last week, a crane collapse on the train tracks between the Rawang and Kuang stations (pictured) resulted in the severance of the overhead line. This incident caused disruptions to ETS, KTM Komuter, and cargo train services, leading to delays exceeding two hours. 10,000 people were affected on the day of the incident, including 7,000 Komuter passengers and 3,000 ETS passengers. The train services were restored two days later.

Railways looking up

King officiates first ECRL track installation

Earlier this month, the Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah (pictured) officially marked a significant milestone by inaugurating the installation of the first East Coast Rail Link (ECRL) track. Launched on August 9, 2017, with an estimated cost of RM50 billion, ECRL is slated to commence operations in January 2027. The megaproject involves a 665km railway line featuring a total of 20 stations, including 10 stations that serve both passengers and cargo. 

KL-SG HSR plan reactivated via public-private partnership

The government has decided to reactivate the Kuala Lumpur-Singapore High-Speed Rail (KL-SG HSR) project through a public-private partnership model. Subsequently, in July, MyHSR Corp invited concept proposals from both local and international firms and consortia for the mega rail’s development and operation. To accommodate requests from both international and local industry players, the deadline for submitting concept proposals for the KL-SG HSR has been extended from Nov 15 this year to Jan 15, 2024.

MM2H revamped 

The Tourism, Arts and Culture Ministry (MOTAC) recently introduced a revamped version of the Malaysia My Second Home (MM2H) programme, featuring three tiers: silver, gold, and platinum. MOTAC minister Datuk Seri Tiong King Sing (pictured) clarified that each tier comes with specific eligibility requirements, and the minimum age for the revamped MM2H has been reduced to 30 years.

According to Tiong, 88% (1,905 out of 2,164) of MM2H program applications were approved between November 2021 and the end of September this year. Furthermore, a new one-stop MM2H service counter is now operational at MOTAC, offering various services for existing MM2H pass holders. 

New megamall in the heart of KL

The highly anticipated opening of The Exchange TRX, (pictured) the retail segment of the Tun Razak Exchange (TRX) development, finally took place on Nov 29. This expansive retail and entertainment hub boasts over 400 stores within a net lettable area of 1.3 million sq ft, with prominent brands such as Gentle Monster, Alo Yoga, and Molton Brown making their debut in Malaysia here. Additionally, visitors can explore the largest HOKA store in Kuala Lumpur and a 10-acre rooftop TRX City Park.  

New finance minister II and deputy minister for KPKT named 

On Dec 12, Prime Minister Datuk Seri Anwar Ibrahim revealed 10 changes to the Cabinet line-up and the splitting up of two ministries following the Cabinet reshuffling. Among the notable changes was the appointment of Employees Provident Fund (EPF) chief executive officer Datuk Seri Amir Hamzah as the finance minister II. Also, Datuk Aiman Athirah Sabu (PICTURED) is now the new KPKT deputy minister, replacing Akmal Nasrullah Mohd Nasir. 

Unfortunate incidents across locations

A fire occurred at the external TNB sub-station in Mid Valley City, leading to the temporary closure of the mall for a day in May. Fortunately, there were no reported injuries or casualties.   

In October, bad weather resulted in a small section of the ceiling collapsing at Skybridge KLIA Terminal 2. Fortunately, no casualties were reported.

On the night of Nov 28, a Bayan Lepas warehouse collapsed, resulting in three confirmed fatalities. Two individuals were seriously injured and four victims were believed to be buried in the rubble. The Penang Island City Council then issued a stop-work order to aid in the rescue operation. However, the police reported that four workers initially thought to be buried alive had fled the scene. 

A landslide took place at Jalan Wawasan, Puchong, Selangor on Dec 16, causing four vehicles to be buried, two underground pipes to leak and an electricity pole to collapse. Thankfully, no casualties were reported. To mitigate further soil movement, 375 iron piles were installed at the site and sheet piling works were reported to be 85% completed.

New road tax structure to boost EV adoption

Transport minister Anthony Loke Siew Fook stated that the government plans to unveil a new road tax or motor vehicle licence (LKM) structure for electric vehicles (EVs) tentatively this month with the aim to promote greater adoption of EVs. However, the revised road tax structure is expected to be implemented after 2025, following the end of the road tax exemption period for EVs. 

On Feb 15, 2022, the road tax exemption for EVs was introduced by the Transport Ministry, through the Road Transport Department. This exemption specifically covers battery and fuel cell (hydrogen) EVs, excluding hybrid vehicles, and is valid from Jan 1, 2022, to Dec 31, 2025.

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