Measures insufficient to stimulate property mart
PETALING JAYA: The measures announced in Budget 2017 last Friday are insufficient to stimulate the property market, said Malaysian Institute of Estate Agents (MIEA) immediate past president Siva Shanker.
"Whatever measures they have introduced now, I think it is not enough to stimulate the market but it is a good start, at least it addresses one strata of society and one segment of the property market. The real test will be in the delivery," he told theSun.
He said most of the measures, while positive, will take some time to have an impact on the market. "We need to address the situation now. The under-supply in the affordable homes sector and properties for B40 is happening right now," he said, adding that property transactions have been slow for five years.
Shanker said the 100% stamp duty exemption for first-time buyers of houses priced RM300,000 and below is a good move as it would help young buyers but the availability of such homes is limited.
CH Williams Talhar & Wong Sdn Bhd managing director Foo Gee Jen said although there were many initiatives announced for affordable homes, the overall impact is neutral on the property sector.
"I think they could have done a bit more in addressing the issue of the delivery of units. I'm also not too happy with too much fish being given to the rakyat rather than teaching them how to fish. Too many freebies were given when emphasis should be more on how to elevate the income of the rakyat," he said.
Foo applauded the government's move in boosting the supply of houses for young people who are entering the job market in Kuala Lumpur, especially the 10,000 houses in urban areas that will be made available for rental to youths at below market rates.
"That is a good start. It gives options to the young people as it is not just about buying. I think that sends the right signal to the people to not buy if you are not ready. That is a good strategy by the government as it provides an alternative market. We should not only talk about ownership," he said.
Both Siva and Foo said the increase in stamp duty for properties priced RM1 million and above is a negative move as it would further slow down transactions and affect properties in the big cities namely Kuala Lumpur, Penang and Johor.