She said the residential market would be the main beneficiary if the government adopted proposals for temporary reductions in special business and transfer taxes and increased lending to low-income earners.

However, acceleration of government spending would help improve the economy as a whole and, consequently, the overall property market.

Similar tax measures were introduced between 2001 and 2003 in an effort to boost the property market's recovery from the 1997 economic crisis. The measures, together with low interest rates at that time, proved to be successful, because the residential sector enjoyed strong sales.

Although the tax measures may not be able to restore consumer confidence, which has been hurt by the ongoing political uncertainty and softening economic outlook, they will help increase affordability for home-buyers and accelerate their decision-making.

Suphin said the proposed acceleration of government spending would have a significant positive impact on the economy if it involved acceleration of the mega-projects.

Experience shows that construction of mega-projects creates jobs and boosts purchasing power in all sectors, including real estate, she said.

Aside from the proposed stimulus measures, she urged the government to ensure that any future policies were consistent. Policy surprises would further weaken both business confidence and consumer expectations, and these conditions affect both the commercial and residential property sectors, she said.