Rate cut boost for REITs

Meanwhile, CGS-CIMB said potential beneficiaries of the overnight policy rate (OPR) cut include the property, auto and consumer sectors, due to the increase in consumers’ disposable incomes.

PETALING JAYA: While the recent interest rate cut will have a minimal impact on the local property industry, the various supportive policies announced by the government is sufficient to help sustain the sector.

Kenanga Research in a report yesterday said it was timely for the government to reintroduce the Home Ownership Campaign (HOC); to allow a 90% loan-to-value ratio for third home purchases; and to abolish the real property gains tax to help support the property industry amidst the current challenging environment.