After being extended until end-2019, the Home Ownership Campaign (HOC) could once again be extended to further mop the massive unsold houses in Malaysia.
“Yes, it is possible for the HOC to be extended as developers are already lobbying for this,” said CBRE-WTW (CBRE Group Inc and CH Williams Talhar & Wong Sdn Bhd) MD Foo Gee Jen.
HOC, which began this year and offered many discounts and incentives, has been successful in encouraging people to buy houses. In fact, many developers reported brisk sales following a few years of disappointing results.
Sime Darby Property Bhd, for instance, claim that the campaign contributed 50 percent of its RM1.4 billion sales during the first half of 2019.
Sime Darby Property chief marketing and sales officer Gerard Yuen shared that the company saw an increase in sign-ups at the end of June, before the first extension of the HOC was announced. He expects to see a similar increase in December before the campaign ends.
Foo revealed that the market is already speculating an extension until March 2020, reported The Malaysian Reserve.
“The current campaign has gained good responses from the market. It may be a good opportunity to help homebuyers to own a home with such incentives,” noted Asiacap Valuer & Property Consultants Sdn Bhd property valuer Kit Au Yong.
But while the campaign showed some signs of success, Foo said the property sector should seek its own “equilibrium”.
“I believe the market has to find its own equilibrium and take the natural process and do its own correction. Let the market forces determine the price buyers wish to buy. Do not artificially mark up the price and then offer discounts, rebates or freebies,” he added.
Meanwhile, PPC International Sdn Bhd MD Datuk Siders Sittampalam believes developers and the government might not get the same results even if the HOC is extended until next year.
“They are not going to see the same level of interest as genuine buyers could have bought what they wanted,” he said.
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