Top 3 Property Trends Spotted Since MCO

As the country enters the Recovery Movement Control Order (RMCO) period, there are 3 trends worth noticing now that the property market is gradually picking up.
Top 3 Property Trends Spotted Since MCO

There are clear signs at how the property market is changing and showing positive signs since the Movement Control Order (MCO) period was enforced in mid-March this year.

With sentiments of uncertainty and many resulting to holding back their purchases during the peak of the pandemic, demand for properties have certainly bounced its way up now that the country enters the Recovery Movement Control Order (RMCO) period. 

As people are becoming hopeful in the real estate industry, the confidence in continuing their property journey during this time of a buyers’ market has since saw the rise of 3 new trends being spotted, as shared during the AskGuru Live: Post-COVID Hotspots Around Greater Klang Valley webinar held on 27 June, 2020.

 

1. Demand is coming back

Top 3 Property Trends Spotted Since MCO

The first obvious trend is that demand is most certainly coming back, cites Sheldon Fernandez, Country Manager, PropertyGuru Malaysia during the webinar.

This coincides with Bank Negara Malaysia’s third announcement of Overnight Policy Rate (OPR) reduction by 50bps to 2.00%, making it the lowest since 2009/2010, thus proving a sweet spot for buyers and investors to take advantage of the lower interest rates.

According to the data from PropertyGuru Analytics, overall site traffic to residential properties in May till June started to increase gradually when the Conditional Movement Control Order was enforced.

“With businesses reopening and relaxation in place, property seekers started looking for opportunities once again as they are mainly driven by consumer sentiment,” said Fernandez.

 

2. Locations are decentralised 

Top 3 Property Trends Spotted Since MCO

The term decentralisation (where the center point for property seeking is no longer sought-after) is becoming a new trend since MCO and is causing areas outside of Greater Klang Valley to emerge as hotspots.

Amy Wong, Director, Research & Consultancy, Savills (Malaysia) Sdn Bhd shared that 50% of new launches were from outside of the Greater Klang Valley in 2019 and it is imminent these hotspots are gaining more demand.

According to PropertyGuru Analytics, Negeri Sembilan saw a 70% week-on-week (WoW) increase in pageviews since MCO and Seremban in particular, increased by 37.7% WoW in pageviews since MCO. Putrajaya and Perak also witnessed WoW increase of 30.6% and 16.6% respectively, indicating that buyers are looking to buy outside of the Greater Klang Valley area.  

Siew Weng Hong, Director, Henry Butcher Malaysia Group elaborated that Seremban has received a “city” status just recently and is the most urbanised area in Negeri Sembilan. Seremban on its own has 13.9% land mass, however, the population in that area is close to 60% of the entire Negeri Sembilan, which is touted to further expand.  

Citing Kajang as an example 20 years ago, Siew is confident that Seremban is only going to emulate the success of what Kajang is today with excellent connectivity, infrastructure, amenities, and housing.

On how to spot a hotspot growth, Wong and Siew concurred that a town like Seremban with additional planned in-state highways namely Mantin-Labu Pelanduk Highway, Senawang-KLIA Expressway, proposed High Speed Rail (HSR) Seremban station, and existing highways like the North-South Expressway (PLUS) and LEKAS, will further help with property appreciation in the coming years.

The large number of companies that have set up their factory plants such as Coca-Cola, Ajinamoto, Proton, etc has caused pent up demand for housing as job employment is in abundance there.

Siew shared an example whereby a property in Acasia, City Homes in Seremban was purchased for RM350,000 in 2004 and later sold in 2018 for RM938,000 proving that overtime, a place like Seremban is poised for growth.

For the question on how investors should spot a hotspot, it is recommended to follow the highway networks and railway routes where the investor has to analyse the trends of price appreciation, rental appreciation, population growth as well as study the future planned infrastructure and amenities in the area before deciding.

For an own-stay property seeker, paying attention to townships or developments that offer well-planned amenities, facilities and infrastructure that are occupant-ready will further benefit the purchase.

 

3. Search demand is online

Top 3 Property Trends Spotted Since MCO

Now that businesses and industries are slowly opening, Fernandez opines that the property pent-up demand is going to further increase the demand to own a property which is projected to outperform pre-MCO levels.

And this has been clearly spotted with an increase of searches on online platforms. According to the Malaysia Consumer Sentiment Study H1 2020, consumers prefer sourcing for properties from online platforms with majority relying on property portals, social media and developer websites.

One noteworthy finding from the study showed that 67% of the younger pool of buyers between ages 22 to 29 years, used developer websites to search for the right information given innovative packages were heavily promoted on their sites since MCO.

Seeing this as an opportunity, developers and online platforms will leverage on this to encourage more property seekers to find and purchase their dream homes virtually.  

 

Looking for more hotspots for your property search journey and other information? Start browsing through our handy guides here. 

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