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Kuala Lumpur: The property sector in Malaysia is expected to see a gradual improvement in the first half (1H) of 2022 backed by a rebound in market sentiment and the national economic recovery.PropertyGuru country manager Sheldon Fernandez said the gradual improvement will see the property market likely to accelerate in the 2H of next year based on its asking price indicator study on future transaction prices. “We anticipate that, if it is not on market recovery, at least it will be stabilised in terms of prices. “For the near term, market confidence will still be heavily influenced by the developments in the Covid-19 front as we are still seeing uncertainty ahead of us particularly with the Omicron variant,” he said in the PropertyGuru virtual panel discussion on “2022 Property Market Outlook” on Wednesday. Fernandez said the outlook for the property market will continue to be cautious as the country migrates from a pandemic to an endemic approach in the Covid-19 crisis. But on a more optimistic side, the positive economic data indicators, improved vaccination rates, clearer policies in government long term plan and the opening up of international borders will be the drivers in boosting economic recovery. “There will be five main key trends that will impact the property sector. Firstly, the stabilised market will revive buyers’ interest, alongside an improving outlook on job security as we continue to recover.

“Secondly, with the improved economic environment, which we hope will put money back into people’s pocket, this will entice property seekers and investors to buy properties,” said Fernandez.

He added that the Budget 2022 announcement, tabled on Oct 29, saw the removal of Real Property Gains Tax (RPGT) on homes that are sold in the sixth year onwards. RPGT was initially introduced to curb speculation during an overheated market period.

“Its partial removal will help liberalise the market for investors and second home buyers who do not have long-term plans to retain their properties,” he said. Thirdly, the revival of programmes to boost the sector such as the Home Ownership Campaign (HOC) may potentially be extended next year, and hopefully be expanded into the secondary market. “Besides, the government’s policy in Budget 2022 to provide RM2 billion guarantee to banks via the Housing Credit Guarantee Scheme, in assisting those in the gig industry, micro-entrepreneurs and farmers with access to financing, is a progressive and inclusive approach to homeownership.

“Additionally, there is also the RM1.5 billion allocation to build affordable properties for low-income earners,” he said.

Lastly, he said the progress of mega projects to enhance future prospects will also generate excitement for the property market as it will add value to the surrounding areas. This includes infrastructure projects like the Light Rail Transit 3 (LRT3), East Coast Rail Link (ECRL), Johor-Singapore Rapid Transit System (RTS Link) and the potential High Speed Rail (HSR) that will likely spur the market forward in 2022.