OPR cut boosts buyers' confidence
15 Jul 2025 02:02pm
While mid-range and affordable homes may see the most immediate uplift, renewed interest in the high-end segment may also emerge, especially among upgraders or long-term investors seeking to take advantage of more favourable loan terms. - Bernama photo for illustration purpose only
KUALA LUMPUR - Bank Negara Malaysia's (BNM) recent overnight policy rate (OPR) cut could create a more favourable lending environment and reinforce confidence for property buyers, according to PropertyGuru and iProperty Malaysia country manager Kenneth Soh.
He said that while this rate adjustment is a promising step, shifts in consumer behaviour and market response typically take time to unfold. On July 9, BNM reduced the OPR by 25 basis points to 2.75 per cent, marking the central bank's first rate adjustment since 2023. - 123RF photo for illustration purpose only
"This adjustment could mark the beginning of a more accommodating phase to support Malaysia's economic resilience.
"With transaction volumes holding steady and buyer confidence gradually strengthening, the latest monetary move will likely help sustain positive momentum across the property sector,' he said in a statement.
Soh said the lower OPR would directly alleviate financial pressures, making home loans more accessible and repayments more manageable.
"Coupled with other measures, such as the Housing Credit Guarantee Scheme, the rate cut may coax hesitant buyers back into the market. Buyers who were on the fence due to steep mortgage costs may now see a realistic path to owning a home,' he said.
He highlighted that the rate cut is an opportunity to rekindle sales efforts, especially in the mid-range and affordable segments where demand is expected to be most responsive.
"Improved buyer sentiment and financing conditions may lead to an uptick in bookings and sales, encouraging developers to gradually roll out new launches or reintroduce existing offerings with more attractive financing incentives tailored to current market conditions,' he said.
While mid-range and affordable homes may see the most immediate uplift, renewed interest in the high-end segment may also emerge, especially among upgraders or long-term investors seeking to take advantage of more favourable loan terms, said Soh.
"Developers who offer value-driven products in well-connected, liveable locations will be best positioned to capitalise on this momentum,' he said.
On July 9, BNM reduced the OPR by 25 basis points to 2.75 per cent, marking the central bank's first rate adjustment since 2023.
This pre-emptive action comes at a pivotal time aimed at safeguarding growth amid moderate inflation, lowers the cost of borrowing across the board, and sends a positive signal to the property sector. - BERNAMA
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