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Economic changes that affect home ownership affordability in 2022


As the economy rebounds during the endemic phase of COVID-19, the Malaysian government has moved quickly by implementing proactive policy changes to strengthen the housing market. 

@faizzaki | 123RF

At the height of the pandemic, the government pulled every trick in its hat to ease the economic toll of the ongoing global health crisis. Some of these policy changes included allowing the rakyat to make several Employees Provident Fund (EPF) withdrawals to cushion income losses and introducing the Home Ownership Campaign (HOC) to boost the property market.

Although economic uncertainties still linger in the market, the reopening of Malaysia’s borders and the country’s steady move to the endemic phase of COVID-19 have led to a gradual market rebound and consumer sentiment in many industries, including the property market. This year, in a bid to accelerate economic recovery, the government has been proactively introducing several new policy changes that not only affect demand and supply, but also the affordability of home ownership.

The following are some of the positive effects of the government’s most recent policies – as well as corresponding innovative initiatives by a developer in the industry to spur investments – and how these could pave the way to rejuvenating Malaysia’s economy, as well as the property market in the long term.

Stabilising inflation, uplifting market sentiment

the rising inflation affecting the daily lives of ordinary Malaysians
@lilyoh | 123RF

Another hot topic among consumers and households currently, is the rising inflation affecting the daily lives of ordinary Malaysians. To its credit, the government moved quickly to address this critical issue–to cool down the rising inflation, Bank Negara Malaysia (“BNM”) recently decided to increase its Overnight Policy Rate (“OPR”).

In the short term, the move looks to have paid off. For example, prices of some basic goods such as cooking oil and chicken, which were skyrocketing just a few months ago have stabilised recently. This is certainly good news for consumers and will ease the financial constraints of Malaysian households. Potential property buyers can breathe a sigh of relief due to stabilising inflation and gradual recovery of their disposable income as well as purchasing power. All of these factors combined will lead to further uplift of overall market sentiment.

RPGT exemptions, a timely boost

starting from January 2022, homeowners who sell off the properties in the sixth year onwards will be exempted from RPGT.
@belchonock | 123RF

The government offered good news for property buyers in Budget 2022. The Finance Minister announced the exemption of Real Property Gains Tax (“RPGT”) for Malaysians selling off their properties between 1 June 2020 and 31 December 2021. Furthermore, starting from January 2022, homeowners who sell off the properties in the sixth year onwards will be exempted from RPGT.

This would certainly provide a timely boost for the market and a positive impetus for home buyers amid various economic concerns. With the RPGT exemption, the savings that home buyers enjoy would incentivise them to sell their current homes. Consequently, this would free up cash that can be used for new home purchases.

Building on the HOC momentum

The popular Home Ownership Campaign (HOC) initiative, which was launched by the government in 2019 and ended in 2021, was a shot in the arm for both property developers and home buyers. It provided a much-needed uplift to the property market and addressed some of the property overhang issues. HOC stimulated the property market with several attractive financial incentives such as full exemption on stamp duty, as well as other great promotions by participating developers.

Despite many developers appealing to the government to extend the HOC, unfortunately, there have not been any signs that the campaign will be revived. Nevertheless, the market is hopeful that the positive momentum generated by HOC will continue post-pandemic, especially among innovative developers that offer dynamic solutions to attract the market.

One local developer taking up this leadership mantle among Malaysian developers is award-winning Mah Sing which is offering home buyers a viable alternative to the HOC with its unique H.O.M.E campaign.

Looking for a housing deal to stretch your hard-earned income? Need a home buying package to ease your financial burden? Want a pain-free entry into home ownership?  Mah Sing’s campaign which runs from 1 July – 30 September 2022 ticks all these boxes.

To address the current economic concerns affecting consumers listed above, Mah Sing’s H.O.M.E is offering great deals which include lower monthly payments for the first 5 years of home ownership. Among the developer’s prestigious projects participating in H.O.M.E are M Luna, M Vertica, M Arisa, Erica @ Meridin East and Sensory @ Southville City.

Mah Sing’s H.O.M.E Campaign

Participating projects Price FromMonthly Payment
M LunaRM 385,000*RM 1,500
M VerticaRM 480,800*RM 1,800
M ArisaRM 299,000*RM 1,185
Erica @ Meridin EastRM 430,000RM 1,400
Sensory @ Southville CityRM 389,000*RM 1,000

*Terms and conditions apply

On top of that, Mah Sing is also offering free stamp duty and zero down payment to further ease the financial burden of first-time home buyers and upgraders, especially in Klang Valley, Johor and Penang.

These savings would be a boon to home buyers looking to minimise their initial cash outlays. The extra cash would certainly be useful for other expenses in their dream homes, such as buying comfortable furniture and fittings, or even for some major renovations.

Malaysians always love getting maximum value for their Ringgit. Mah Sing’s H.O.M.E campaign could be just the golden ticket in your home ownership journey. If you are interested in this innovative campaign by Mah Sing, just visit their website to find out more.

Disclaimer: The information is provided for general information only. Malaysia Sdn Bhd makes no representations or warranties in relation to the information, including but not limited to any representation or warranty as to the fitness for any particular purpose of the information to the fullest extent permitted by law. While every effort has been made to ensure that the information provided in this article is accurate, reliable, and complete as of the time of writing, the information provided in this article should not be relied upon to make any financial, investment, real estate or legal decisions. Additionally, the information should not substitute advice from a trained professional who can take into account your personal facts and circumstances, and we accept no liability if you use the information to form decisions.

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