The latest overnight policy rate (OPR) cut is expected to have a negligible impact on the local property sector, in light of muted gross development product (GDP) growth.
CGSCIMB said in a report yesterday that the OPR cut would spur property demand to some extent.
“Homebuyers’ purchasing power would likely increase in tandem, but we expect the upside to be limited, especially for properties in the affordable range of RM300,000 to RM500,000.
“Our sensitivity analysis shows that every 25-basis-point (bps) cut in the borrowing rate would reduce the monthly housing loan instalment by only RM32 to RM69, or raise a buyer’s eligible loan amount by RM3,000 to RM15,000,” it said.
Media Title: The Star
Date: 9 May 2019