Fresh Property Curbs On The Way


BMI View: Malaysia's property market is set to face new tightening measures over the coming months as policymakers consider hiking property taxes and further tightening loan conditions on mortgages. We have long argued that Malaysia would need to implement tougher measures to cool the property market, given that neighbouring countries have adopted a much more aggressive stance in recent years. Moreover, measures to cool the property market should also help to address the country's rising household indebtedness.

Bank Negara Malaysia (BNM) is widely expected to introduce new tightening measures over the coming months in a bid to reinforce existing policies aimed at cooling the property market. This is in line with our long-held view that policymakers would become increasingly concerned with the unchecked rise in property prices, and that they would be willing to implement tougher measures if needed to curb speculative activity ( see 'Property Market Looking Precarious', March 2012). Regulators may consider hiking property taxes and further tightening loan conditions on mortgages, according to a statement in July by Housing Minister Adbul Rahman Dahlan.

Property Tax Hikes And T ougher Loan Condition s To Come

Property Prices Have Peaked
Malaysia - House Price Index, (2000 = 100) (LHS) & % chg y-o-y (RHS)

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This article is tagged to:
Sector: Country Risk
Geography: Malaysia

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