More Owners Looking To Sell Property
01 Jul 2020
Original Article from Property Guru
With the announcement of the government’s Penjana economic stimulus package on 5 June, more property owners are now keen on selling their properties.
This comes as interest rates on loans stand at just about 3%, which means lower monthly repayments.
The Penjana package for property also removed the 70% margin of financing limit on third residential properties valued at RM600,000 and above, while offering stamp duty exemptions on sale and purchase agreements until 31 May 2021 as well as exemptions on real property gains tax.
Malaysian Institute of Real Estate Agents President Lim Boon Ping believes that these measures will help drive sales, keeping the property market active.
“Of course market sentiments are still very low. Markets are badly affected after the MCO but these policies will stimulate the real estate market,” Free Malaysia Today quoted Lim as saying.
“We are seeing more motivated sellers willing to negotiate prices as they know buyers have more choices now but the market will not crash as there will not be fire sales (urgent sale, often at a steep discount).”
Notably, the country registered zero property transactions during the enforcement of the movement control order (MCO), which kicked off on 18 March. Job cuts and pay cuts were also expected to deter people from making a property purchase.
However, real estate agents received more enquiries in May from property owners looking to sell their properties given that property viewings were already allowed during the conditional MCO, reported Free Malaysia Today.
Bank Negara’s six-month moratorium on loans also helped the property market as it served as a “breathing space” for individuals who have lost their jobs as a result of the pandemic.
Others can also opt to refinance their homes prior to the end of the moratorium to lower their monthly instalment payments.
Despite this, Lim still expects more people to rent than acquire a property.