Latest news with #KennethSoh
Sinar Daily
6 days ago
- Business
- Sinar Daily
OPR cut boosts buyers' confidence
While this rate adjustment is a promising step, shifts in consumer behaviour and market response typically take time to unfold. 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 More Like This
The Sun
6 days ago
- Business
- The Sun
OPR cut boosts property buyer confidence in Malaysia
KUALA LUMPUR: Bank Negara Malaysia's recent overnight policy rate (OPR) cut is expected to improve lending conditions and strengthen buyer confidence in the property market, according to PropertyGuru and iProperty Malaysia country manager Kenneth Soh. He noted that while the rate adjustment is a positive step, changes in consumer behaviour and market dynamics usually take time to materialise. 'This adjustment could mark the beginning of a more accommodating phase to support Malaysia's economic resilience,' Soh said. The OPR reduction to 2.75 per cent, announced on July 9, is the first adjustment since 2023. This move is seen as a pre-emptive measure to sustain economic growth amid moderate inflation while lowering borrowing costs. Soh explained that the lower OPR would ease financial burdens for homebuyers, making loans more affordable and repayments more manageable. 'Buyers who were on the fence due to steep mortgage costs may now see a realistic path to owning a home,' he said. The rate cut, combined with initiatives like the Housing Credit Guarantee Scheme, could encourage hesitant buyers to re-enter the market. Soh highlighted that mid-range and affordable housing segments are likely to benefit the most, with potential spillover effects on the high-end market as upgraders and investors take advantage of better loan terms. Developers offering value-driven properties in well-connected locations are expected to capitalise on this momentum. 'Improved buyer sentiment and financing conditions may lead to an uptick in bookings and sales,' Soh added. - Bernama
New Straits Times
7 days ago
- 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 Sun
14-05-2025
- Business
- The Sun
Demand in Malaysian property market shows strong resilience: PropertyGuru
KUALA LUMPUR: Demand in the Malaysian property market has proven resilient, bouncing back swiftly after a dip triggered by the US tariff announcement. According to PropertyGuru country manager Kenneth Soh, consumer searches and inquiries briefly declined following US President Donald Trump's tariff move, but the market quickly regained momentum – highlighting strong underlying confidence among Malaysian property seekers. 'As the situation evolves, we are seeing a diminishing immediate impact on overall consumer search behaviour. 'Looking at the sector as a whole, it has consistently shown strong resilience,' Soh told reporters at the PropertyGuru Group 2024 Sustainability Report launch and Market Outlook briefing today. He said search volumes on the PropertyGuru platform grew consistently from January to April, showing that demand in the market remained resilient. 'There is still growth in purchase and rental markets as well,' he added. Soh said sound policies from the government and Bank Negara Malaysia have contributed to a more robust property ecosystem. 'For instance, Bank Negara Malaysia has helped build a stronger financial ecosystem. Our interest rates remain stable, banks are prudent in evaluating loan applications, and we have a solid credit scoring system. As a result, borrowers who do secure loans generally have a high repayment rate.' He added that Malaysia's credit environment is strong, with a high proportion of borrowers able to service their loans. 'All the market signals show that we are not in a problem,' Soh noted. He said demand is driven by locals and first-time homebuyers, as well as returning foreign investors with sustained interest in both residential and commercial properties. 'We are still seeing a strong pool of investors, with certain hotspots attracting more attention than others. Foreign investors are also making a comeback,' he said. 'Singapore continues to be a major source of foreign buyers, particularly in Johor. In Kuala Lumpur and Penang, we are also seeing renewed interest from other countries, including buyers from China,' Soh said. However, the bulk of the demand is still from locals and first-time homebuyers. 'Locals are just searching for a home. The bulk of the searches are still primarily for residential purposes. First-time homebuyers. The majority of searches are for residential properties, especially in the sub-sale market, where supply is higher.' Furthermore, Soh said there is renewed interest in property as an investment, not just for people buying homes to live in. 'We actually see the interest in property and investment go beyond just residential as well, commercial as well. We see that is also a growing trend.' On sustainability, according to insights from PropertyGuru's 2024 survey, 83% of Malaysians are willing to pay a premium for a home with sustainable features, prioritising benefits such as reduced utility costs, improved climate resilience and long-term value retention. With 32 million monthly visits from property seekers and 50,000 active real estate agents across the region, PropertyGuru delivers new platform innovations and data-driven insights that directly address pressing challenges in the property market. Demand for sustainable living is growing in Southeast Asia, with 77% of Malaysians factoring in climate risks in their homebuying decisions, according to the survey.
Malaysiakini
14-05-2025
- Business
- Malaysiakini
Urban Renewal Act needs hyper-localised approach
The Urban Renewal Act must be implemented thoughtfully and tailored within local contexts, said PropertyGuru Malaysia country manager Kenneth Soh. 'It has to be a very hyper-localised approach depending on the area in question. The government is rightly consulting with all parties, trying to understand the nuances; that's commendable. 'We'll see how...
