Rehda calls for home purchases before interest rates rise

PETALING JAYA, JANUARY 18, 2017 : General view of new building of condominium house under construction at Mont Kiara.(Pic by Afif Abd Halim/TMR)

This is as the current market is ripe for potential house buyers to help hedge against the rising rates

by SHAFIQQUL ALIFF / pic TMR

THE Real Estate and Housing Developers’ Association Malaysia (Rehda) calls on potential home buyers to hedge against the rising interest rate by making their property purchase now.

Rehda acting president Datuk NK Tong said the current market is the best time for potential house buyers to make their purchase since the interest rates are rising not only in Malaysia but also globally.

“People should buy property to help hedge against it and look long term. Although interest rates have been fluctuating, the property segment would retain its value in the long run and hopefully outpace inflation as well,” he said in a press conference for the “Karnival Jom Beli Rumah” yesterday.

Rehda, the Ministry of Housing and Local Government and Media Prima Omnia Bhd (Omnia) are set to co-organise the carnival, an initiative by the government to encourage home ownership.

The carnival will commence from July 15 to July 17, 2022, at Mid Valley Exhibition Centre, Kuala Lumpur, mainly for the bottom 40% and middle 40% group, offering an affordable property with a price range as low as RM250,000.

Yesterday, Bank Negara Malaysia raised the benchmark Overnight Policy Rate by 25 basis points to 2.25%, in line with market expectations.

According to Tong, Rehda’s latest offering will be joined by six financial institutions including their Financial Partner, Maybank Bhd.

“We are pleased to co-organize our MAPEX with the government to become the ‘Karnival Jom Beli Rumah’ this time. This is maybe a good time to consider hedging against inflation and locking in investment,” he said.

Meanwhile, the National Housing Department DG Datuk Jayaselan Navaratnam said the extension of the Home Ownership Campaign (HOC) is currently pending on the government’s approval.

“We are hoping that the additional 10% discount under the HOC will be available for this carnival and would cushion the rising interest rate and inflationary pressures to provide affordable prices for the people,” Navaratnam told reporters in the same press conference.