(Editor :- Once again another a property outlook close to home) 

Bricks and Mortar
By TEH LIP KIM

WHILE last year was generally good for properties in Malaysia, particularly at the top end of the market, news of the credit crunch in the US stemming from the subprime mortgage crisis had become troubling by year-end. 

Still, we tend to remain optimistic about the prospects for Malaysian property. The government had put various measures in place for the property market and announced a series of liberalisations, financial incentives, and system enhancements even before the news of the credit crunch reached our shores. 

These included changes  changes to Employee Provident Fund (EPF) withdrawals. Effective this Jan 1, EPF members will be allowed to make a withdrawal every month from Account 2 of their accounts to finance their housing loans. Previously, EPF withdrawals for housing purposes were permitted only once every three years, and subsequently, once a year.  

If all 5.4 million EPF members take advantage of this initiative, about RM9.6bil is expected to be released for home purchases, which will surely give the real estate market a nudge in the right direction.  

Drawing on the experience of our neighbour down South, home ownership in Malaysia, currently at 67%, is likely to increase with this new monthly withdrawal scheme. In 1980, when Singapore allowed its Central Provident Fund (CPF) members to use their CPF money for paying off monthly mortgages, home ownership was 59%. By 2000, according to the Singapore Census, home ownership had risen to 92%.  Read more »