MM2H revision a boon for property sector
PETALING JAYA: The property sector has likely entered a new upcycle supported by the revised guidelines for the Malaysia My Second Home (MM2H) programme, which could boost demand for homes in the country.

According to Hong Leong Investment Bank (HLIB) Research, the revised MM2H conditions are expected to renew interest in MM2H and this could positively impact the property sector, especially on the high-end segment.

“We understand that developers and foreign property purchasers alike have been adopting a wait-and-see approach pending the announcement from government on the new MM2H conditions.

“With better clarity on the relaxed conditions, developers now have a better picture and visibility of the market and we could potentially see more launches in the high-end residential segment,” the brokerage explained in its report yesterday.

“Similarly, on the demand end, there is also likely some latent demand as these prospective buyers were waiting for the new MM2H conditions to be announced. We think this development is an overall positive for most developers,” it said.

HLIB Research upgraded its outlook for the property sector to “overweight” from “neutral”, citing the sector had entered a new cycle.

The Tourism, Arts and Culture Ministry last weekend announced the revised guidelines for MM2H guidelines, which were more relaxed than the 2021 version, had been approved by the Cabinet. The relaxed guidelines included lower requirements for fixed deposits, offshore income and liquid assets.

The revised programme included a new requirement for house purchase for MM2H holders, whereby they are required to buy and own a house with minimum purchase value of RM600,000 under the silver category, RM1mil under gold and RM2mil for platinum.

The effective date of the new MM2H programme is yet to be announced.

Under the revised guidelines, MM2H would be divided into three categories – silver, gold and platinum. There would also be a new category for MM2H application to special economic zone (SEZ) and special financial zone (SFZ).

HLIB Research noted that the conditions under the SEZ-SFZ category, which restricted MM2H holders to purchase property only from the primary market, would be positive for the Forest City development, a designated SFZ area, in Johor.

In the Klang Valley, most developers with exposure in this area were expected to benefit as many properties were priced above RM600,000, HLIB Research said.

The companies include Mah Sing Group Bhd , Sunway Bhd , OSK Holdings Bhd , UEM Sunrise Bhd , S P Setia Bhd, IOI Properties Group Bhd (IOIProp), and Eastern & Oriental Bhd .

“Given expected renewed demand in higher-end products, developers may also start launching products in high-end range,” HLIB Research said.

In Johor, the research house pointed out that the lowering overhang of serviced apartments from the Forest City project was an overall positive for the residential market in Johor especially for surrounding developments such as those by Sunway and UEM.

“Developers where landbanks are in locations to be designated as SEZ should also benefit. Note that the government has yet to designate the locations of SEZ,” it said. Developers with significant Johor land bank exposure included UEM, Sunway, IOIProp, S P Setia, Mah Sing, Crescendo Corp Bhd , Keck Seng (M) Bhd , and KSL Holdings Bhd .
Property,PropertyUpcycle,MM2H,RealEstateBoost,HighEndResidential,PropertyDemand,DevelopersBenefit,JohorLandbank,MalaysiaHousing
The property sector has likely entered a new upcycle supported by the revised guidelines for the Malaysia My Second Home (MM2H) programme, which could boost demand for homes in the country.