By admin on Nov 12, 2019 11:32:33 AM
- 2020 Budget Housing Policy will help boost the domestic housing market
- disclosure of properties price information, the Malaysia market currently lacks an instant and user-friendly
(Kuala Lumpur 23) Malaysia’s End to End Platform SPEEDHOME stated that The 2020 Budget Housing Policy will help boost the domestic housing market. If it can be combined with digital technology to accelerate market efficiency and transparency of trading information, this will further improve the sluggish domestic properties Market.
CEO of SPEEDHOME Wong Whei Meng stated that, In the 2020 Budget, it is prevalent that the government is showing their determination on solving the properties overhang through implementing three new policies. Firstly, reducing the threshold for foreigners to purchase houses price from 1 million to 600 thousand, secondly closely cooperating with financial institutions to launch “Rent To Own” and finally provide low-interest housing loans.
He believes, the housing policies announced during the budget 2020 will boost the trading properties markets. However, the traditional paperwork for buying a house is cumbersome. From paying the booking to the application for loans, the whole process involves different institutions such as developers, agents, and law firms. The paperwork involved is one of the main reasons causing a decrease in industry efficiency, if there is a better digital solution, this will ultimately increase the number of transactions in the market faster.
In response to the disclosure of properties price information, the Malaysia market currently lacks an instant and user-friendly, neutral housing information inquiry website. In Malaysia, to know the price information in a certain area, most people still rely on the agent or developer to provide information. A fraction of homebuyers will personally go to some online property classified websites to search for the price of the relevant area’s houses, but the price information of these houses is still provided by the developer or agents.
It can only be said that for house buyers getting the information of the Malaysia property market is very difficult, and the market transaction volume and prices are not transparent. In this regard, in order to solve the problem of information asymmetry, the Bank Negara established a website named Housing Watch two years ago. The original purpose was to provide more information about the supply and demand key information of the real estate industry in Malaysia. However, the website it‘s few shortcomings, such as missing Search feature, hence it is understandable as to why many are not aware of its existence.
But you can find that information on SPEEDHOME, It is an online properties industry trading platform. Whether renting or buying, all prices are clearly marked on the website. Tenants/buyers can communicate directly with the owner without any agent, so the homeowner and tenant can save the commission and reduce the property price.
Regarding the residential property rental market, the supply and demand in Greater Kuala Lumpur is balanced. The homeowners who have renewed their contracts under the SPEEDHOME platform this year, most of them maintain the same rental price as last year. Incidentally, the average rent price of the platform in the Klang Valley has increased over the years. It is believed so because of an increase in some high-end industry transactions on our platform.
Also, the rental supply of houses in Johor has increased, and the rental price has also dropped by between 3 to 5% compared with last year. It is believed that Johor locals still tend to live in landed properties, and high-rise properties are mainly for the investment buyers. The number of local tenants was not enough to take up the huge supply, which causes the downward pressure on the price of rent for landed properties.
Wong Whei Meng said: "Because the policy for lower down the threshold for foreigners buying properties, the state government still has the final say on the decision on the price. It is estimated that many Singaporean buyers will delay time before formulating a strategy. This is because to ensure that there is no sudden policy changes made and revised in the meantime. Hence, the sluggish transaction situation in Johor is expected to remain for a while"
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