4 Key Highlights of the Real Estate Market in Malaysia 2021
Malaysia’s property market is the most friendly in the Asian region, they welcome foreign investors and buyers to their land with open arms. Despite having this open arm concept, the repercussions of the pandemic were still seen throughout 2020.
It served as one of the worst years for real estate as the pandemic took away a lot of opportunities from people wanting to invest or buy a property for residential or commercial purposes.
However, the real estate market has been slowly shifting towards a positive direction recently in lieu of the Covid-19 National Immunisation Programme that was launched on the 16th of February and started deployment on the 26th of February.
Experts are predicting that although it may take another year to recover from the loss because of the pandemic. The arrival of covid vaccines is playing a major hand in stabilising the real estate market.
Researchers have found that more than 81% of Malaysians wish to buy a property by the end of 2021. This is happening because of the various incentives that were introduced during the pandemic to help the property business. Â
If you are planning to buy a property or invest then you should know what this year has to offer. So here we have gathered the 3 key highlights that will impact your decision greatly this year.
1. Property prices are expected to be lower
2. Property overhang is expected to remain high
3. Buyers are expected to purchase properties once MCO is lifted
4. Virtual viewings are the future
1. Property prices are expected to be lower
If you’re looking to invest in real estate or purchase your own house, this would be a perfect time. The real estate industry has been through some bad times, especially during the initial COVID-19 pandemic. Since the majority of property owners will be putting properties on lease or purchase after a long time, real estate prices will not be as high.
To actually be able to make a profit, it is expected that sellers will sell for a lower price. House prices have already decreased since the real estate sector suffered drastically during the first Covid-19 outbreak.
2. Property overhang is expected to remain high
The number of unsold completed units is expected to remain high with three states, Johor, Selangor and Kuala Lumpur recording the highest numbers of overhang properties at 33,000 units, 8,700 units and 7,800 units respectively according to Rahim & Co Property Market Review 2020/2021.
Although existing issues such as unaffordability, oversupply and income levels to cost of living contributed to the high overhang numbers, the pandemic has made the numbers even more obvious.
These numbers may be stabilising in the urban areas if we see more demands as property developers give out discounts in an effort to adjust pricing through the Home Ownership Campaign (HOC) which is due to end on May 31, this overhang number is not expected to show any significant drop.
3. Buyers are expected to purchase properties once MCO is lifted
As researchers have predicted, the buyers market is going to rise and properties will be more in demand once the lockdown is lifted. This is because people who were put on hold during the pandemic will want to purchase properties.
Also, people with travel restrictions will want to settle outside the country and the demand will rise in that case. Moreover, most Malaysians are investing in the real estate market right now since the property prices are comparatively affordable.
4. Virtual viewings are the future
The property industry has had to adapt and modernise to meet the rising trend in digitalisation. Virtual viewing is the new way you can see a property online since the lockdown enforces movement restrictions. SPEEDHOME has been a pioneering company to actively encourage Virtual Viewing for their tenants. So, if you are looking to buy a property and can’t visit because of the pandemic, simply take a digital tour!
SPEEDHOME has been coming up with new and innovative ways to ensure that both our landlords and tenants can benefit. Virtual Viewing for properties has ensured that our landlords don’t suffer from a financial lapse with their rentals. Tenants are also able to rent hassle-free and fast with Zero Deposit!
2021 is a good year to get into the real estate market and make worthwhile investments. Take advantage of the low property prices and find your next dream home!
