PropertyGuru: 2019 Budget reflects dynamism, proactiveness of government

PropertyGuru: 2019 Budget reflects dynamism, proactiveness of government

KUALA LUMPUR,. Online property portal, PropertyGuru Malaysia said the 2019 Budget reflected a spirit of dynamism and pro-activeness in some of the government’s innovative ideas and proposal, including for the property sector.

Malaysia Country Manager, Sheldon Fernandez said the idea to use crowdfunding to buy properties, a world’s first by Malaysia, was interesting.

“We seek more details on how potential issues of home ownership and such will be ironed out to ensure the idea is effective and actually boosts home purchase and ownership, especially among the younger generation,” he said in a statement.

On tabling the 2019 Budget, Finance Minister Lim Guan Eng said the government would be approving private-sector-driven “Property Crowdfunding” platforms which would serve as an alternative source of financing for first-time home buyers.

Lim said the first exchange is expected to go “live” in the first quarter of 2019, after all necessary approvals are obtained from the Securities Commission.

Commenting further on the government’s commitment to provide affordable homes, Fernandez said the open tender approach for government land, would ensure appropriate valuations to bolster its coffers.

He also saw the proposal for the exemption of stamp duties for properties below RM300,000 purchased by selected households and for unsold properties priced between RM300,001 to RM1 million as also positive.

However, he was also hoping for the same exemption to be extended to the Middle 40 segment purchasing homes priced up to RM500,000.

“While the RM1 billion fund to help the B40 segment buy homes priced below RM150,000 is well intentioned, it must be taken into account that such houses are usually harder to find in urban areas and city centres.

“Homes in these areas are generally priced higher, and hence, the RM150,000 threshold could have been higher,” he said.

On another matter, Fernandez said the proposal to develop an aerospace industry hub in Subang would also serve as a catalyst for property development in the area, including Shah Alam and Sungai Buloh.

“In regards to aviation, the airport real estate investment trust (REIT) is also interesting. As a global first, it offers an exciting new model to unlock the value of aviation assets going forward,” he added.

The government plans to pioneer the REIT to privatise infrastructure assets, and hopes to raise RM4 billion from selling a 30 per cent stake in the REIT to private investing institutions. — Bernama