Knight Frank: The real estate market improves after more political clarity after the elections | Money

Inside the first quality center in Malaysia at the SkyWorld Property Gallery in Kuala Lumpur on January 22, 2018. The sentiment of the real estate market would have improved in the first half of 2018. – Picture by Yusof Mat Isa

KUALA LUMPUR, July 26 – The market sentiment in the real estate sector has improved in the first half of 2018 thanks to a smooth transition of power and greater political clarity of the new government, said the firm Knight Frank in its half-yearly report published today. The company said the strong economic growth over the previous year and a more stable post-election environment showed signs of improvement in a market marked by years of sluggish growth

" After the elections, there seems to be a slight rise in buyers because of the renewed confidence in the newly elected government, "the report said in its outlook on high-end stratum units around the capital.

The previous administration was forced to impose a bank Negara Malaysia warned against the development of the high-end condominium segment at the end of last year.

The current government of Pakatan Harapan, who took power in May after a shock The coalition of four parties also promised to reform the housing market.

The Minister of Housing and Local Government, Zouraida Kamarudine, highlighted the key points of the reform of Barisan Nasional. Knight Frank, in his perspective on the residential segment across the country, said there are some signs that the policy has boosted investor confidence.

"In the mass housing market, there is a plausible return of buyers and investors who are actively seeking bargains before the early recovery"

The company also expected to see the growth of the commercial real estate sector in the second half of 2018, investors seeking to exploit the "three-month tax holiday" to bag the properties at reduced prices

. "The year-end tax holiday is also positive for the June 1 real estate market," says the prospect.

"The zero rate of the goods and services tax (GST) should stimulate the commercial subsector. the properties during the tax holiday pay 0% GST

"Thus, we expect to see more activities in this market segment."

Residential properties are however exempt from the consumption tax, which means that to float around the current level, the company said.