With the Covid-19 pandemic, Malaysia’s real estate market is expected to shift from a seller’s market to a buyer’s market.
Speaking at the online ASEAN Real Estate Forum, Malaysian Institute of Estate Agents (MIEA) President Lim Boon Ping said the market is expected to witness a minimum price adjustment of 10% after the lifting of the government’s Movement Control Order (MCO), reported New Straits Times.
Referring to the Indonesian representative’s statement, who said some properties in Indonesia are down by 50%, Lim said he does not see Malaysian property prices declining by 50%.
“In Malaysia, it should be somehow slower, probably 10% or maybe the maximum we could be seeing is some 20%,” he explained.
Titled “Our Lesson Learned”, the forum’s participants were the council of presidents at the Asean Real Estate Networking Alliance (ARENA).
ARENA Secretary-General K Soma Sundram noted that while housing demand in Malaysia has significantly dropped, there are still groups of investors who are on the lookout for a good buy.
“These are people waiting for the price to come down. Immediately after the MCO is lifted we can expect a lot of motivated sellers in the market who are willing to drop their price by single-digit or at least by 10% as they will need the cash to finance themselves or require money to strengthen their cash position. Those are the people who will sell at a lower price.”
In fact, he believes that willing sellers and willing buyers, along with aggregate demand and supply, will dictate market movement and property prices once the MCO is lifted.
“Since 2012, the property market has come down. Correspondingly, prices have also come down. We expected 2020 to be a better year with some positivity in the market but then the MCO happened. The situation could be there will be more sellers than buyers. I believe after the MCO is lifted it will be a buyers’ market and we can see some good things happening,” he said.
With this, Soma advised real estate negotiators to acquire new skills, expand their contacts, interact more with clients and be prepared post-MCO.
He added that they could also bring in more value to clients via enhanced digital training and marketing.