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New Straits Times
15-07-2025
- Business
- New Straits Times
OPR cut to 2.75pct a timely boost for homebuyers, homeowners, developers
KUALA LUMPUR: Clear and timely insights are critical as Malaysia's property market continues to evolve in line with demographic shifts, affordability challenges and broader economic cycles, said Kenneth Soh, country manager – Malaysia, PropertyGuru and iProperty. He said Bank Negara Malaysia's recent decision to reduce the Overnight Policy Rate (OPR) by 25 basis points to 2.75 per cent – its first adjustment since 2023 – is a timely signal for a market that is steadily regaining momentum. This pre-emptive move aims to support growth amid moderate inflation, lower borrowing costs across the board, and inject fresh optimism into the property market, Soh said. According to PropertyGuru Malaysia's H2 2024 Consumer Sentiment Study, 33 per cent of respondents intend to buy a home within one to two years. Soh believes the latest OPR cut could be the catalyst needed to convert that intention into action. "While this rate adjustment is a promising step, shifts in consumer behaviour and market response typically take time to unfold. Nonetheless, this adjustment could mark the beginning of a more accommodative 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." For both consumers and industry players, this cut creates meaningful opportunities to ease financial burdens and build on the steady market recovery seen over the past year, he said. Soh added that the rate cut presents meaningful opportunities for both consumers and industry players by easing financial burdens and building on the recovery seen over the past year. History, he noted, supports this positive outlook. When Bank Negara last cut the OPR by 25 basis points in May 2019, residential property transactions rose sharply – up 11.5 per cent quarter-on-quarter and 6.6 per cent year-on-year, according to the National Property Information Centre (NAPIC). "This precedent highlights how monetary easing can unlock real demand in the housing market," Soh said. He explained that the most immediate beneficiaries will be homeowners and buyers with variable-rate mortgages, who can expect lower monthly repayments. For example, a terraced house in Kuala Lumpur priced at RM865,000 – the median price as of Q1 2025 – would typically require monthly repayments of about RM3,627 under a 30-year mortgage at 3.8 per cent with 90 per cent financing. With the OPR cut, monthly repayments could drop by about 3.03 per cent, translating into long-term savings of roughly RM39,500 over the loan tenure, assuming rates remain stable. This relief is especially significant for first-time buyers, who consistently cite high interest rates as a major barrier to homeownership, he said. PropertyGuru Malaysia's study found that 40 per cent of first-timers struggle to save for a down payment, with many pointing to high financing costs as a key hurdle. Soh said the lower borrowing cost, together with initiatives like the Housing Credit Guarantee Scheme (SJKP), could encourage hesitant buyers to enter the market. He added that current homeowners could also benefit by refinancing for better terms or upgrading to larger homes while rates are still favourable. "Families looking to upsize or secure more flexible financing now have more room to plan," he said. A boost for developers Soh said developers are expected to leverage renewed buyer sentiment, particularly in the mid-range and affordable segments, where demand is most responsive to improved financing conditions. Better affordability could translate into stronger bookings and sales, motivating developers to revive launches or roll out new incentives tailored to today's market. Upside may also extend to the high-end segment, particularly among upgraders and investors keen to secure favourable loan terms. Developers who offer value-driven products in well-connected, liveable locations will be best positioned to capitalise on this momentum, Soh said. "On the flip side, Malaysia's market still has an inventory overhang in certain segments, notably condominiums and subsale units. With greater affordability, buyers may begin to absorb available stock in the secondary market, helping stabilise prices and prevent further softening in previously oversupplied areas. "Simultaneously, in more sought-after locations such as prime suburbs, increased demand could encourage more rational price growth driven by genuine need rather than speculation. This kind of steady activity is a positive sign of a maturing market responding to real financial conditions," he said.
The Star
30-06-2025
- Automotive
- The Star
Musk fumes as Trump tax bill cuts electric vehicle credits
The Senate tax bill would bring a quicker end to a popular US$7,500 (RM31,627) consumer tax credit for electric vehicles. — AP Elon Musk slammed the US Senate's latest version of President Donald Trump's multi-trillion dollar tax bill last Saturday, warning that the cuts to electric vehicle and other clean energy credits would be "incredibly destructive' to the country. Musk, the chief executive officer of Tesla Inc and SpaceX, posted on his social media platform X about the bill, which the Senate advanced in a contentious vote late Saturday. Musk recently left Trump's side after working for several months as the head of Trump's so-called Department of Government Efficiency. The bill would destroy millions of US jobs and give "handouts to industries of the past while severely damaging industries of the future,' Musk said. The tech billionaire's latest criticism of the package threatens to reawaken his public rift with Trump that began after the world's richest man left his cost-cutting job in the administration. Trump was asked about Musk in an interview that was recorded on Friday before the billionaire's most recent posts. "I haven't spoken to him much, but I think Elon is a wonderful guy, and I know he's going to do well always,' Trump said on Fox News's Sunday Morning Futures with Maria Bartiromo, which aired Sunday. "But he got a little bit upset, and you know that wasn't appropriate.' The Senate tax bill would bring a quicker end to a popular US$7,500 (RM 31,627) consumer tax credit for electric vehicles. While the earlier proposal would have ended the incentive at the end of this year for most EV sales, the new version terminates the credit after Sept 30. Tax credits for the purchase of used and commercial electric vehicles would end at the same time. – Bloomberg
Khaleej Times
06-03-2025
- Business
- Khaleej Times
Dubai: 50% drop in prime real estate listings amid surge in end-user purchases
The number of homes available for sale in Dubai fell 30 per cent while the prime market saw an even higher reduction of over 50 per cent in home listings in 2024 as more end-users bought properties in the emirate to beat rising rentals, according to real estate consultancy Knight Frank. 'We have noted a rise in genuine end users, rather than speculative purchasers that have defined previous cycles. This change is reflected in the fact that there has been a 30 per cent reduction in homes available for sale across the city last year, with the prime markets in the city experiencing an even more acute 52 per cent reduction in home listings,' said Faisal Durrani, Partner, head of research for Mena at Knight Frank. As reported by Khaleej Times earlier, tenants in Dubai are increasingly shifting to ownership due to a surge in rental rates amidst a big increase in population in the post-pandemic period. Real estate Asteco said the residential rental market experienced robust rental growth in 2024, with rates for apartments and villas rising by approximately 2-3 per cent in the fourth quarter of 2024. Official data showed that Dubai recorded a 30 per cent drop in month-on-month rental renewals in February, suggesting a potential from rental to ownership, resulting in a few properties becoming available for sale in the market. Dubai's population continued to increase in 2025. The emirate added nearly 27,000 new residents in the first two months of this year, taking the city's population to 3.852 million. Knight Frank's data showed that the number of homes available for sale in the $10 million-plus bracket fell 40 per cent, down from 4,119 to only 2,491 homes over the last 12 months. The number of homes available in the $25 million-plus bracket saw more than double the rate of decrease – 85 per cent, down from 583 to only 86 properties over the last year. This drop is due to the influx of millionaires and ultra-high net worth individuals to Dubai who are making the emirate their home in the past few years. Petri Mannila, partner for prime residential, Dubai, Knight Frank, said prime segment growth over the last 12 months highlights that the enduring demand for luxury properties coupled with a decrease in available luxury homes continuing to push prices, which reached Dh6,627 per square foot in Q4 2024. 'Dubai's luxury market has cemented its status as a safe haven for international and local luxury buyers with another record-breaking year for the $10 million homes market registering 435 deals over 2024, 153 of which were recorded in Q4 alone making it the highest figure recorded in one quarter on record for this segment,' said Mannila. Strong pipeline According to Knight Frank, the total number of homes under construction now stands at 302,880 units. Of these, 80 per cent will be apartments, with the remainder being villas and branded residences. This translates into an average of approximately 60,576 homes per year for the next five years, higher than the long-term completion rate of around 36,000 homes per year. While this appears higher than historic levels, there has been a 30 per cent lag in promised completions over the long term. With this in mind, Knight Frank said just over half of the 60,000 promised homes in 2024 were delivered. According to Cavendish Maxwell, Dubai's residential property market supply looks very strong as 243,000 new units are in the pipeline for delivery until the end of 2027 with Jumeirah Village Circle leading the chart, which will stabilise prices and rents and ease pressure on tenants. 'The strength of Dubai's real estate sector is anchored in its long-term fundamentals. The city's ability to attract global capital, combined with its strategic regulatory initiatives, ensures demand remains robust across all market segments,' said Farooq Syed, CEO of Springfield Properties.
