Chronicle of Malaysia

After more than six months of the Covid-19 pandemic, it has become painfully clear that many industries have been severely affected by the outbreak.

The real estate industry is no exception. In fact, it has been hit hard, with consumer weariness sentiment and regional tourism experiencing a considerable slowdown.

But one hotspot that has maintained its momentum to attract foreign property buyers is the Kuala Lumpur City Center (KLCC).

According to the Malaysian Institute of Realtors (MIEA), foreign ownership of property in Malaysia is approximately 5% to 7% in the vicinity of KLCC and 3% in Selangor.

“We often receive inquiries from Hong Kong, China and other countries about the situation in Malaysia, living conditions and other matters. It shows that foreign investors and property buyers continue to show interest in coming to Malaysia. “

Sai noted that anticipated demand from buyers in China and Hong Kong, as well as investors who do not buy or own property abroad, would greatly improve for properties in Malaysia, due to bad experiences in their own country.

“The political turbulence in China and Hong Kong has led residents to look to Malaysia as a second home due to the lower prices here.

Sai admitted that previous calamities, such as the SARS pandemic, the 1998 Asian financial crisis, and even the Nipah virus outbreak, negatively affected the country’s economy.

However, he was optimistic that despite the devastating effects of the Covid-19 pandemic, the Malaysian economy will recover strongly. “The real estate market has been affected, but we are not completely sunk. He will come back stronger than ever. “

Data from the International Monetary Fund shows that investors buying properties from Hong Kong, Macau, China, and many more are still looking into Malaysia’s long-term growth potential, and the country is on track to achieve high-income status for 2024.

This is because Malaysia has one of the highest living standards in Southeast Asia, along with a low unemployment rate of 3.3%.

“While the local consumer is having its ups and downs, foreign interest in Malaysian real estate has not diminished,” Sai said.

At this juncture of the pandemic, he said, local consumer sentiment is shifting mainly towards daily necessities like food.

What’s more, most prospective home buyers and renters are still too scared or unable to take home tours, so property sales are understandably taking a hit.

However, Sai pointed out that the reintroduction of the Home Ownership Campaign and the exemption from the Real Estate Income Tax has helped the real estate industry considerably.

Real estate agents have started using different methods, such as social media posts, videos, and live webcast seminars, to stay in touch with potential clients and buyers.

Meanwhile, Metro Homes Realty Bhd CEO See Kok Loong anticipates that rentals and property purchases in the KLCC area will slow due to the closure as foreign investors are unable to enter.

“As it did before the pandemic, KLCC will continue to rely heavily on foreign buyers for its prices and services, while Malaysians continue to live on the fringes of the KL City area.”

During the Covid-19 pandemic, See said there was a downward trend in property sales, exacerbated by the cancellation of the Malaysia My Second Home (MM2H) program. “This further weakened the market.

But it is not all bad news. Recently, the UOA Group auctioned several Four Seasons residence units that were sold at a higher price than reserve.

“It means that Malaysians are still looking for good deals. With the right product, there are still buyers. “

See expects the real estate market to improve in the middle of next year. For now, he said, the market needs to focus on rentals and work closely with high net worth individuals to help them with good investments.

“Interest rates are at historic lows and the money deposited in the bank will not generate high returns. The best thing to do is put it on a good asset if the price is right. “

MALAYSIA FREE TODAY

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