Deric Lim, a property agent from Dutama Properties, said that maintaining the OPR means that people will continue to purchase.

“I think it’s good news for most people. The OPR affects existing homeowners more, as there are more people already paying mortgages than buying new properties,” he told FMT Business.

“Even for those who have purchased properties for investment purposes, this is also good news as the overall rental has gone up,” he said.

He said most homeowners and investors had benefited from the historically low pandemic-driven OPR of 1.75%.

“Previously, when the OPR was lower, landlords were getting the same rental, so they had positive cash flow to invest elsewhere.”

Lim said that in Bangsar, Damansara, Mont Kiara and Bangsar South areas, rental and property prices are going up, but demand still exists.

“Rental is going up 10% to 20% but the demand is high while supply is limited. These apartments are being rented out for RM6,000 to RM7,000 a month. Even when owners ask for RM8,000 in rent, people are willing to pay,” he said.

Lim said that even if BNM had increased the OPR, the property market would not have been severely affected.

“Housing is more of a need rather than a choice. Post-pandemic, people who own houses are in the middle to upper income groups, who were mostly not severely affected by Covid-19,” he said.

BNM announced today that it will maintain the OPR at 2.75%.

The central bank raised the OPR to 2% from 1.75% in May last year, reportedly the lowest on record, following a 25bps cut in July 2020.

It then raised the OPR by another 25bps to 2.25% in July, to 2.5% in September, and then again to 2.75% in November.