Malaysian property agents prepare wish list to revive sliding home sales, diminishing interest from Hong Kong buyers
- Home sales fell 25 per cent in the first half while a housing glut worsened amid the Covid-19 pandemic
- Foreign buyers have reduced their presence in the local market in the third quarter as other options such as the UK become new magnet
Malaysian real property agents, facing one of the toughest lockdowns during the pandemic, are now clamouring for an overhaul in market policies to revive sagging demand and halt a housing glut.
Their wish list includes eliminating or reducing stamp duty on purchases, enhancing support for first-time buyers, and a lower property gains tax, according to a study conducted by property portal Juwai IQI. They are hoping the government will deliver the goodies on November 6, when it presents the budget plan for 2021.
“The situation with housing supply did not improve significantly in the first half because of Malaysia’s relatively long and strict lockdown,” said Georg Chmiel, executive chairman at Juwai IQI. “New launches dropped even faster than transactions.”
Home sales fell 25 per cent in the first half to 75,318 units from a year earlier, while the current glut worsened by 31,661 units or 3.3 per cent from the end of 2019, according to government statistics. Some 13,924 new units entered the market, a 44 per cent drop from a year earlier.