The secondary housing market moved the real estate business last year, accounting for around 80 percent of the country’s real estate transactions, reported New Straits Times.
“New projects account for between 20 and 25 percent. It is the secondary market that drove the market last year,” said Malaysian Institute of Estate Agents (MIEA) past president and chief trainer K. Soma Sundram.
In fact, the booming secondary market is expected to continue to move the property market this year.
On the market’s present condition, Soma Sundram explained that the property market, which is witnessing more supply than demand, is still finding its direction.
He noted that demand is based on various factors, such as financing and income level.
“Prices have gone up and it’s good that the market is going through this period,” he said. “It is now finding the balance where it should go from here on.”
Meanwhile, MIEA deputy president Eric Lim called for a stronger regulation and enforcement in order to curb the activities of illegal real estate agents.
He revealed that majority of the real estate agents registered under the Board of Valuers, Appraisers and Estate Agents Malaysia (BOVAEA) are found in clusters within Johor, Penang and the Klang Valley.
Since activities in other states are scarce, these illegal agents thrive on unregistered transactions, he said, adding that East Malaysian states has the highest number of illegal transactions.
He shared that the company had been educating the public on the dangers of dealing with illegal property agents.
“We try and educate the public not to respond to illegal signboards on the streets, not to deal with them as they are not registered,” said Lim, who also serves as chairman of the BOVAEA’s Estate Agency Practice Committee (EAPC).
“If at any moment the deal goes wrong, victims would not be able to recover their losses.”
According to Lim, EAPC has partnered with relevant government agencies in a bid to bring the illegal real estate agents to justice.
Image sourced from Getty Images
Diane Foo Eu Lynn, Senior Content Specialist at PropertyGuru, edited this story. To contact her about this or other stories email email@example.com