CIMB Securities Research said the return of the highly-popular HOC, coupled with the right incentives, could prod a reduction in the number of unsold properties.
PETALING JAYA: Among the proposals in the Budget 2025 wish list, the Home Ownership Campaign (HOC) and the Madani Deposit scheme are expected to have the most significant impact on revitalising the property sector.
According to CIMB Securities Research, the return of the highly-popular HOC, coupled with the right incentives, could prod a reduction in the number of unsold properties.
The Madani Deposit scheme, on the other hand, could help young people buy their first homes by lowering the initial financial barrier, benefiting especially the Bottom-40 and Middle-40 segments, the research house noted.
“Affordability-related issues remain a central theme for the property sector heading into Budget 2025, although quite a number of proposals that were put forth are not new,” it wrote in its report.
“Sifting through its wish list, we identify two high-impact proposals that if implemented, could reinvigorate the property sector – the HOC and Madani Deposit scheme,” it stated.
Likewise, the research house noted that while the revamped Malaysia My Second Home visa scheme is reportedly drawing fresh interest from China’s wealthy youth, it remains to be seen if it would translate into applications under this programme.
Overall, CIMB Securities Research retained its “neutral” stance on the property sector, with Sunway Bhd
and Mah Sing Group Bhd as its top picks.
It noted that among the major property players, Mah Sing was one advocating a return of the HOC.
“It views the incentives given under the HOC, such as the 100% stamp duty exemption for properties priced from RM300,001 to RM1mil and the 10% discount for first-time homebuyers, as pivotal in assisting first-time home ownership and reducing the property overhang situation,” CIMB Securities Research said.
“Not unlike the Madani Deposit scheme, Mah Sing also harbours hopes that the government could introduce a one-off, first-time home buyer’s grant of RM30,000 (for properties priced up to RM500,000) plus lower fixed-rate financing,” it added.
The Madani Deposit scheme, targeting youths aged between 21 and 40, is one of the 33 proposals pushed by the Housing and Local Government Ministry.
“The maximum threshold under the Madani Deposit Scheme is RM30,000 for homes priced not more than RM500,000.
“In line with this, a consumer sentiment study conducted by PropertyGuru for the second half of 2024 revealed that half of the respondents’ desire greater government support in the form of affordable housing schemes, financial subsidies and policies targeted at reducing the financial burden of home ownership,” CIMB Securities Research said.
“While additional details remain unclear at this juncture, we gather that the housing grants under this scheme may be limited to controlled-priced affordable housing,” it added.
Meanwhile, the Real Estate and Housing Developers Association had expressed hopes that Budget 2025 would provide more incentives for developers to continue building affordable housing.
“A detailed study should be conducted to ascertain the supply and demand for affordable housing.
“This is crucial to determine market-clearing prices for affordable housing and its appropriate location,” CIMB Securities Research said.
On green applications, the research house noted, the umbrella body for local developers expects tax reduction incentives to be dished out to property developers that promote green buildings.
“Based on feedback obtained from the developers, they require better tax incentives to offset the increased costs of adopting the environmental, social and governance agenda,” it said.
