MIEA Wants Extension of Incentives for Secondary Home Buyers

The Malaysian property market has witnessed significant shifts in recent years, driven by changing consumer preferences and market dynamics. One of the key players in this sector, the Malaysian Institute of Estate Agents (MIEA), has been actively advocating for policies that support sustainable growth and accessibility in the housing market. Recently, MIEA has urged the government to extend incentives offered during the Home Ownership Campaign (HOC) to first-time home buyers (FHB) in the secondary market. This move is aimed at addressing the growing demand and shifting preferences among consumers, particularly those entering the market for the first time. In this detailed analysis, we will explore the reasons behind MIEA’s recommendation, the statistics supporting their stance, and the potential impact on the property market.

The Malaysian Institute of Estate Agents (MIEA) plays a pivotal role in shaping the real estate landscape in Malaysia. As a professional body representing estate agents, MIEA is committed to promoting best practices, advocating for fair policies, and ensuring that the interests of both buyers and sellers are well-represented. One of the key initiatives in recent years has been the Home Ownership Campaign (HOC), which has provided significant incentives to first-time home buyers. These incentives have been instrumental in boosting demand and making homeownership more accessible to a broader segment of the population.

Recent trends indicate a notable shift in consumer preferences from the primary to the secondary market. This shift can be attributed to several factors, including affordability, availability of properties, and changing lifestyle preferences. According to MIEA president Lim Boon Ping, the statistics reveal a clear trend: the percentage of first-time home buyers in the secondary market has been on the rise. In 2019, FHB in the secondary market accounted for 61.55%, up from 57.57% the previous year. This increase underscores the growing importance of the secondary market in meeting the housing needs of Malaysians.

To better understand the dynamics at play, let’s delve into the numbers. In 2019, the total number of properties transacted reached 133,939, with 82,437 of those transactions involving first-time home buyers in the secondary market. This represents a significant portion of the overall market activity. Comparatively, in 2018, the total number of properties transacted was higher at 56,987, but the percentage of FHB in the secondary market was lower by 4%. This discrepancy highlights the growing trend of first-time buyers opting for the secondary market, driven by factors such as lower prices, more diverse property options, and the availability of established neighborhoods.

Given these trends, MIEA has been vocal in its advocacy for extending the incentives offered during the Home Ownership Campaign (HOC) to first-time home buyers in the secondary market. The rationale behind this recommendation is straightforward: by providing similar incentives to those in the primary market, the government can further stimulate demand, support economic growth, and ensure that more Malaysians have access to affordable housing. MIEA believes that this policy shift will not only benefit individual buyers but also contribute to the overall stability and vibrancy of the property market.

Extending HOC incentives to the secondary market could have several positive impacts on the property market. Firstly, it would likely increase the number of transactions, boosting market activity and economic growth. Secondly, it would provide more opportunities for first-time home buyers, addressing the growing demand in the secondary market. Additionally, by supporting the secondary market, the government can help to balance supply and demand, preventing market imbalances and ensuring that property prices remain within reach for the average Malaysian.

The Malaysian Institute of Estate Agents (MIEA) has identified a significant shift in consumer preferences towards the secondary market, particularly among first-time home buyers. By urging the government to extend HOC incentives to this segment, MIEA aims to support sustainable growth in the property market and ensure that homeownership remains accessible to all Malaysians. The statistics clearly demonstrate the growing importance of the secondary market, and MIEA’s advocacy reflects a forward-thinking approach to addressing the evolving needs of the housing market. As the property landscape continues to evolve, the insights and recommendations from MIEA will be crucial in shaping policies that benefit both buyers and sellers.

For further reading and detailed statistics, you can refer to the following sources: