More saving opportunities seen for first-time home buyers

Buyers urged to enter the market to look for deals with developers or negotiate with vendors as there are more options now


THE current decline in property prices due to oversupply, as well as the government’s policies that were introduced to circumvent the situation, is expected to provide more saving opportunities for first-time home buyers.

Laurelcap Sdn Bhd property valuer Kit Au Yong said home buyers are being treated better now compared to the high demand period.

“Vendors and property agents are certainly friendlier now in terms of request and pricing.

“My recommendation for buyers is to enter the market to look for deals with developers or negotiate with vendors as there are more options available now,” he told The Malaysian Reserve (TMR).

He said as long as buyers are being selective buying the right properties, for example those located in highly in demand areas with good connectivity among others, chances are they will not make the wrong decision at least for the long term.

He also said that despite it being a “buyers’ market”, the demand is still revolving around the subject of affordability and stringent procedures for loan approval.

In addition, policies announced in Budget 2019 — including the waiver of stamp duty on the instrument of transfer and loan agreement for residential homes valued up to RM300,000 for a two-year period, and the six-month waiver of stamp duty charges for properties priced from RM300,001 to RM1 million — will provide additional savings which are advantageous to home buyers.

VPC Alliance (KL) Sdn Bhd MD James Wong expressed a similar opinion, saying it is indeed “a very good time” to buy a residential property with the various discounts and incentives provided by the developers and the incentives announced in Budget 2019, especially for first-time buyers.

“Owing to the property overhang and unsold units in the residential property market, many developers are offering good sales packages such as rebate, price discounts, low booking fee, innovative financing packages, fully/partially furnished units and etc to clear their unsold stocks.

“For first-time buyers and buyers of affordable housing, there are certain incentives and interest rebates in Budget 2019 to take advantage of when buying houses in the current market,” he told TMR.

Wong said demand will be more for affordable housing and middle-income housing, while buyers of high-end homes will still adopt a “wait-and-see” attitude as evidenced by many vacant high-end homes in the current market.

Meanwhile, Wong said there are still many people who choose to rent instead of buying as the house rental is lower than the housing installment, especially for young, working adults.

“As such, many developers have implemented a rent-to-own programme for their housing developments.

“Potential buyers who are currently unable to afford a house can opt to rent the house, with an option to purchase in five years time’ at a pre-determined price,” he added.

Au Yong said although renting is still very much limited to the young adults, the current market seems to be warming up to a special new segment of rent-to-own and crowdfunding, which comes with a similar concept.

“Let’s see the market acceptance of it as we have yet to get any details on how receptive of the market towards this idea. I hope it can do well and we can see a more robust market with an additional option for financing,” he said.