KUALA LUMPUR: The revised minimum wage announced in the 2027 Budget is expected to support household spending could help sustain property demand amid concerns over rising borrowing costs.
RHB Research analyst Loong Kok Wen said that the property sector has come under pressure from rising bond yields, fuelling expectations of higher interest rates and concerns about a potential slowdown in property demand.
"Historically, a gradual increase in interest rates is unlikely to affect the property market significantly (but a steep hike will)," she said in a note.
"We think the goodies announced by the government in the 2027 Budget are timely. Apart from the usual cash handouts, there are a few other initiatives that should help to stimulate consumer sentiment," she said.
