KUALA LUMPUR: Bank Negara Malaysia’s recent overnight policy rate (OPR) cut is expected to improve lending conditions and strengthen buyer confidence in the property market, according to PropertyGuru and iProperty Malaysia country manager Kenneth Soh.
He noted that while the rate adjustment is a positive step, changes in consumer behaviour and market dynamics usually take time to materialise. “This adjustment could mark the beginning of a more accommodating phase to support Malaysia’s economic resilience,“ Soh said.
The OPR reduction to 2.75 per cent, announced on July 9, is the first adjustment since 2023. This move is seen as a pre-emptive measure to sustain economic growth amid moderate inflation while lowering borrowing costs.
Soh explained that the lower OPR would ease financial burdens for homebuyers, making loans more affordable and repayments more manageable. “Buyers who were on the fence due to steep mortgage costs may now see a realistic path to owning a home,“ he said.
The rate cut, combined with initiatives like the Housing Credit Guarantee Scheme, could encourage hesitant buyers to re-enter the market. Soh highlighted that mid-range and affordable housing segments are likely to benefit the most, with potential spillover effects on the high-end market as upgraders and investors take advantage of better loan terms.
Developers offering value-driven properties in well-connected locations are expected to capitalise on this momentum. “Improved buyer sentiment and financing conditions may lead to an uptick in bookings and sales,“ Soh added. – Bernama
