National Property Information Centre (NAPIC) hinted that under the upcoming Malaysian Budget (Budget 2022), the government may extend the HOC 2021 or Home Ownership Campaign to the subsale housing market. 
Houses in Georgetown, Penang. © tsyew/ 123RF.
National Property Information Centre (NAPIC) Deputy Director of Inventory Ari Adam said that that there is a possibility that the government may extend the HOC Campaign to the subsale housing market and freeze stratified building developments under Budget 2022. The HOC 2021 that was previously extended until December this year is currently only for new launch properties, sold by property developers – but the proposed extension to the subsale market may allow homeowners to sell their houses under the HOC banner too.
With benefits like stamp duty and tax exemptions, this gives everyone (property developers and individual sellers) an equal chance in offloading their units in the residential market segment.
On the other hand, NAPIC also hopes that extending the HOC 2021 to the subsale housing market may encourage pent up sales for residential properties. Ari Adam said this during the recent 14th Malaysia Property Summit 2021 – Property Market Outlook for 2021 “Eye on 22” by the Association of Valuers, Property Managers, Estate Agents, and Property Consultants in the Private Sector of Malaysia (PEPS).
The Non-executive Managing Director of Datametrics Research and Information Centre (DARE) Pankaj Kumar who was one of the panellists at the 14th MPS also agreed that the extension of HOC 2021 to the subsale housing market and extending the campaign into 2022 is something that the government should consider as it may help boost market sentiment.
Possible freeze of strata developments under Budget 2022
© nizamkem/ 123RF.
Also under the upcoming Malaysian budget, NAPIC hinted that the government may temporarily halt the development of stratified buildings in an attempt to resolve the overhang issues in the various segments of the property market – these include residential and serviced apartments, office spaces, and malls.
Ari also said that the government foresaw a surge in the development of strata units mainly serviced apartments as property developers are trying to maximise profits as the country is slowly reopening its economic sector. However, there is a cautious mood in the real estate sector as there is still a lot of uncertainty in the business environment.
Ari Adam who was overseeing the situation in Johor pre-pandemic said that the country’s overall overhang situation is quite alarming. Even before the COVID-19 pandemic brought the country down to its knees, overhang units is already a critical issue in Malaysia but the pandemic has only accelerated the slump. He added, a total of 57,154 units worth RM41.54 billion in value comprising completed residential, serviced apartments and SoHos units went unsold in H1 2021.
This article was originally published as 2022 Property Market Outlook: Will Budget 2022 extend HOC 2021 to the subsale housing market by iProperty.com.my and is written by Rebecca Hani Romeli.