Business

Property market remains robust despite OPR hike: Rehda

People recognise real estate is good way to hedge against inflation, says its president

Updated 3 years ago · Published on 13 May 2023 4:28PM

Property market remains robust despite OPR hike: Rehda
Rehda president Datuk NK Tong notes that there will be a tailwind amidst the inflationary environment particularly after the property sector is opening up after three years of pandemic. – ALIF OMAR/The Vibes file pic, May 13, 2023

PETALING JAYA – The Malaysian property market remained robust despite the rise in the overnight policy rate by 25 basis points to 3.0%, said the Real Estate and Housing Developers’ Association (Rehda) Malaysia.

Its president Datuk NK Tong noted that there will be a tailwind amidst the inflationary environment particularly after the property sector is opening up after three years of pandemic.

“However, I think people recognise real estate is a good way to hedge against inflation. So, I think investing in property is still positive.

“We did a survey every six months and the results that came out in February for the end of 2022 showed that most of the developers are more optimistic about the second half of 2023,” he told reporters at Rehda’s Aidilfitri open house at Wisma Rehda today.

On subsidised cement prices, Tong said the government’s move to reduce cement prices for developers building affordable housing priced RM300,000 and below is a good initiative to encourage buyers to buy their first house.

He said developers have been actively building affordable housing for close to 50 years with most such housing being built by its members.

Rehda Malaysia is of the view that it is high time other related industry players offer initiatives to make housing more affordable.

“So, the mechanism is still to be worked out. The developers want to know how much we could actually save from the discounts given to cement?

“Will it vary depending on whether it’s a strata property, because there’s more concrete and cement involved versus landed property,” he said.

On April 18, Prime Minister Datuk Seri Anwar Ibrahim, when announcing the initiative, said the move would benefit the bottom 40 (B40) and the middle 40 (M40) income groups as they would see a maximum of RM5,000 reduction in house prices depending on the type and the price of the house. – Bernama, May 13, 2023

Related News

Culture & Lifestyle / 1y

Home for cancer patients opens in northern region

Business / 3y

Developers maintain neutral outlook for property sector in coming year

Business / 3y

New S’pore property taxes set to push foreign buyers to M’sia: Juwai IQI

Business / 3y

Tough for development projects to be viable due to rising costs: Rehda

Business / 3y

‘No new projects from 51% of developers in 1H 2023’

Opinion / 3y

Let the buyer beware – Chang Kim Loong

Spotlight

Malaysia

MP calls on US to take legal action against Hadi over ‘plot to topple government’ statement

By Ian McIntyre

Malaysia

Malaysia needs to master its own technology - PM Anwar

Malaysia

RM2.48m lost daily to investment fraud syndicates since 2023

Malaysia

Rising bond rates are a sign of rising debt

Education

Selangor to close schools if API readings exceed 200

Malaysia

Loke: Keep Anwar as PM to complete reform agenda

Malaysia

Investigations into political leaders not driven by spite or political payback - PM

You may be interested

Business

Malaysia has great potential to become regional marine fuel hub, boost revenue – expert