KUALA LUMPUR (Aug 1): The soft secondary property market is likely to remain soft for another year due to the resurgence of Covid-19 cases, and property consultants are calling for incentives to be extended to subsale properties.

Rahim & Co International Sdn Bhd chief executive officer of real estate Siva Shanker said policy-based decisions and a level playing field are needed for the real estate market as secondary properties make up a big portion or about 80% of all property transactions.

“A big portion of the real estate market has been ignored and all the attention is given to a small portion of the market (primary market)... I think it is fine if the government gives developers a hand. But if the idea is to strengthen the market, then strengthen the whole market, I believe a flat-based policy should be there for everyone, rather than one that helps only one part of the fraternity.”

According to Knight Frank Malaysia deputy managing director Keith Ooi, secondary property transaction volume has been affected due to the Home Ownership Campaign (HOC) incentives offered to properties on the primary market. 

“The overall number of transactions will likely decline if the HOC is not further extended to the secondary market. We believe that by extending the benefits of the HOC to the secondary market, it will further spur activity in the overall residential market.”

Nonetheless, Henry Butcher Real Estate Sdn Bhd chief operating officer Tang Chee Meng said interest in properties priced above RM1 million in the subsale market will likely not be affected. “The secondary market, without the incentives offered under the HOC, will continue to attract more affluent buyers who cannot find their dream homes among the current offerings of affordable homes on the market, and these would be higher-priced properties in popular locations.”

Read more about it in The Edge Malaysia weekly’s Aug 2 edition.

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