OPR cut can boost consumer spending power, property industry
With the OPR reduced, the interest rates for housing loans too will go lower, boost consumer buying power.
Bank Negara Malaysia's move in cutting the overnight policy rate (OPR) to 3.00 percent from 3.25 percent yesterday can boost consumer buying power, especially in the property sector, a developer said.
Green Target group managing director and CEO, Datuk Tan Hong Lai, said following the reduction of the OPR, the interest rates for housing loans too would go lower.
"The move will also affect fixed deposit rates, which means people may be looking at buying more properties rather than keeping their money in fixed deposit for better return on investment," he told reporters at the launch of the InnoCity township and Johor Affordable Housing Scheme (RMMJ) in Bandar Kledang here today.
Menteri Besar Datuk Seri Mohamed Khaled Nordin launched the project.
Yesterday, at the end of the two-day monetary policy meeting, the central bank announced the OPR reduction by 25 basis points, the first since 2009, to ensure that the economy remained on a steady growth path.
On InnoCity, Tan said it was a development venture between Green Target and YPJ Holdings Sdn Bhd with gross development value of RM3 billion.
The construction of its first phase, which comprises 452 units of RMMJ priced at RM150,000 each and 480 units of villa apartment at a starting price of RM300,000, will begin by year-end.
"It is scheduled for completion in two-and-a-half years," said Tan.
The development of the whole township on a 202.34-hectare site would take between 10 and 15 years, he added.
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