AllianceDBS: No significant impact from potentially higher EPF withdrawal for homebuyers

KUALA LUMPUR (Oct 5): Potentially higher Employees Provident Fund (EPF) withdrawal for homebuyers will not see significant impact on the property sector given that there are already various financing schemes from the government to address the challenge of homebuyers in purchasing their first homes, according to AllianceDBS research.

AllianceDBS research however said that the proposal to raise the allocation for Account 2 for first-time homebuyers from 30% currently to 40% will allow first-time homebuyers to have more upfront funding for their property purchase.

“We believe the measure will be helpful for first-time homebuyers in purchasing properties priced below RM500,000, though the supply for such affordable properties from private developers remains low,” its flash note today said.

The report also mentioned Matrix Concepts Holdings Bhd as the best proxy to affordable housing as the company mainly focuses on landed properties priced below RM600,000. Its property sales remain robust despite the tough operating environment, and are on track to achieve its record-high property sales target of RM1 billion in financial year 2017. — theedgemarkets.com

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