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New Straits Times
a day 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.
Focus Malaysia
3 days ago
- Business
- Focus Malaysia
Limping fruit seller wins hearts, but his struggles mirror a larger crisis
WHEN life gives you lemons, make lemonades. Easier said than done if fortune is not on your side. Recently, a poor roadside fruit seller took the limelight on the cyberspace for his limp as he went about trying to get the passing vehicles to buy his products. Whether it be rain or sunshine, he had to work to make ends meet. But it wasn't just his hardship that drew attention. A heartwarming video showed what happens when a good samaritan decided to help out in his endeavour by buying all his products that day. Not only that, the man even distributed them all for free to the drivers of the vehicles that stopped nearby. Not all heroes wear capes. But will the fruit seller enjoy such fortune everyday? Most likely not. Beradab betul, semua ucap terima kasih 🫶 terima kasih orang baik. — ًِ (@bckupacc99) July 13, 2025 The video highlights the very real plight of the B40 community who struggle everyday to survive in a deteriorating economy. It is more than just a light story to warm the heart, but a wake up call for our leaders and future leaders to do more for the people. But what defines the B40? According to iProperty in an article dated 2024, the B40 represents the bottom 40% of income earners (about 3.16 mil household), with an income less than RM5,250. This category is further subdivided into B1, B2, B3, and B4 where the income drops considerably. But there is more to the story. According to Bernama, the Malaysian middle class or M40 is now losing ground. Based on the Household Income and Basic Amenities Survey Report 2020 conducted by the Department of Statistics Malaysia (DOSM), 20% of households from the M40 group have fallen into the B40 group due to the COVID-19 pandemic fallout. Lawmakers, economists and academics have earlier suggested that the government consider revamping both B40 and M40 categories, which are currently used as indicators for the low-income or bottom 40% of society, and the middle-income group for the mid-40% of society. There are many more of the like of the fruit sellers out there, albeit in another shape or form, and certainly, in need of assistance. —July 13, 2025 Main image: @bckupacc99 (X)
Focus Malaysia
18-06-2025
- General
- Focus Malaysia
Nostalgic patrons share fond memories after curtain comes down on A&W Taipan in Subang Jaya
SOME brands are rooted in nostalgia by virtue of their long standing in the local market. A good example would be A&W which was the first fast food chain in the country when it opened an outlet on Jalan Tuanku Abdul Rahman, Kuala Lumpur in 1963. This was swiftly followed two years later with the country's first drive-in diner in Lorong Sultan, Petaling Jaya which is still in operation today. In fact, whenever news of its impending closure filters out, it is met with sudden surge in crowds looking to re-live childhood memories. Alas, there was no surge in business for the A&W outlet in Taipan, Subang Jaya which recently posted a notice of its permanent closure. Shared by user Johnathan Tan on the Subang Jaya and USJ Food Discovery Facebook site, the 'A&W Taipan gg' news surprisingly generated a very lively debate in the comments section. Firstly, there were those who expressed sadness that an obviously favourite food destination for residents in the area had called it a day. One recalled it being jam packed with customers in days gone by. A few commenters also pointed to other A&W outlets in the vicinity that had also closed down. A number of reasons were proffered as to why this outlet closed. One netizen suggested that it was the logical decision as there were too many A&W outlets in close proximity. Another commented that A&W wasn't keeping with the times. Poor delivery times from this outlet was a sticking point for one disgruntled diner who placed an order during non-peak hours but the food was delivered almost an hour later. She claimed to have given the outlet a second chance but the food again arrived late. Given she was in USJ9 which isn't very far away, the delay was unacceptable. 'Fast food becomes super slow food' was the verdict. The high rental rate in the Taipan area was also blamed for the closure. Few commenters reckoned that this was affecting many eateries, not just A&W. Food quality, though not referring specifically to this outlet, was said to be poor value. The portion size was too small to justify a RM20 outlay, claimed few obviously unimpressed customers. Also referring to A&W in general rather than this specific outlet, service quality was also highlighted as a possible reason for the brand having to shut down outlets. Interestingly, boycotts related to the Israel-Hamas conflict were also blamed for the chain suffering losses. However, this was rebuffed by another commenter who believed that it was just down to a combination of poor service, inferior food quality, overpricing and intense competition. It would appear that regardless of how many fond memories one holds for a particular dining establishment, value-for-money and quality service is what makes a business thrive. Add to that the arrival of a whole slew of new brands in the fast-food game, the competition becomes that much more intense. Fond memories are a bonus. But nostalgia alone cannot save a business. – June 18, 2025 Main image credit: iProperty; Subang Jaya and USJ Food Discovery/Jonathan Tan
