In our previous article, we’ve learnt that people are still actively searching for their dream homes despite the pandemic situation.
Now the question is, how has property prices been affected by COVID-19 and where are the opportunities for agents to close deals?
What is the short-term effect of COVID-19?
Our PropertyGuru Malaysia Property Market Index (MPMI) Q2 2020 Report revealed that asking prices of properties nationwide have been on a downward trend since Q4 2016.
When the Malaysian government announced Movement Control Order (MCO) starting on 18th March 2020, there’s been sharp drops in general consumer activities in the market.
That said, asking prices of properties in Q1’20 saw a QoQ increase.
With sustained property search activities backed by strong pricing outlook at the start of 2020, we could expect rising property prices to hold its grounds despite the pandemic – any price decline would be temporary.
TIP: Download Property Market Index Q2 2020 Report for details.
Where are the opportunities to focus on post COVID-19?
If you’re wondering which areas and property types will fare better despite the pandemic, you’ve come to the right place!
NAPIC’s Annual Property Market Report 2019 stated that terrace house has the highest annual price growth in terms of property type.
Below chart shows breakdown of total residential property transactions in 2019.
Additionally, survey results from PropertyGuru Malaysia Consumer Sentiment Study H1 2020 reported terrace homes as the residence of choice (39%) among Malaysians.
According to Malaysia PMI Q2 2020, based on historical data, terrace homes holds the most stable price growth among property types with 6.5% growth since the 1999-2004 post Asian financial crisis period.
Kuala Lumpur and Selangor remain the undisputed champion states for property sales, however Malacca, Penang and Johor are increasingly gaining popularity amongst property seekers.
Based on PropertyGuru Malaysia data from 26th April to 9th May 2020, Malacca saw the highest increase in total number of property enquiries WoW (+42%), followed by Penang (+23%) and Johor (+11%).
Malacca, as one of the UNESCO World Heritage Sites in Malaysia, is a good location for investment purposes, in anticipation of the tourism sector recovery post COVID-19.
TIP: Leverage on PropertyGuru’s Area Insider to monitor property price trends in popular areas
Opportunities for Agents
With government measures serving as financial catalysts, property seekers now have more disposable income to consider property purchase.
As the market regains its activities progressively, now would be a great time to build pipelines for your real estate business. Here’s how:
- Maximise the exposure of your property listings with Spotlight and Auto-Repost.
- If you have properties in Malacca, Penang and Johor, you may want to also consider Weekly Featured Listing(WFL) to stand out from competition.
- Stay updated on latest property projects to offer the best options for your prospects, our Condo Directoryand New Launches would serve as useful guides.
Additional Articles You Might Find Useful:
- Malaysia’s Property Prices to Adjust by At Least 10% Post-MCO
- How Will The COVID-19 Outbreak Affect House Prices?
- Malacca, Penang and Johor Show Increase in Property Enquiries
Stay tuned for next week’s article!
Agent partners, we are standing by you. Let’s take care of each other.
#KitaJagaKita #GuruCares #PGMYStandByYou
Check out your COVID-19 Resource Guide to see the relief measures, latest webinars and articles available to you!
Sign up for your free webinar sessions available on PropertyGuru Academy!
Other articles on GuruCares initiative for agent partners:
- Standing By You Through COVID-19 (GuruCares Initiative launched on: 1 April 2020)
Find out more about the suite of relief initiatives we rolled out for new and existing agent partners.
- Supporting You Further With GuruCares Initiative: MCO Extension Edition (GuruCares Initiative launched on: 20 April 2020) Find out more about MCO Extension Edition we rolled out for our agent partners.
- GuruCares Initiatives Extended For Your Strong Bounce Back (GuruCares Initiative launched on: 6 May 2020) Find out more about GuruCares Initiatives Extended For Your Strong Bounce Back.
- GuruCares Initiative: Free Webinars By PropertyGuru Academy
Offering you accessible resources so that you can stay on top of the game and be ready to bounce back into action anytime.
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- 3 Online Courses We Recommend to Property Agents
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- Property Seekers Still Keen Despite COVID-19. Here’s What They Are Looking At
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- Helpful Tips To Close During Covid-19
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- When And Where To Focus Your Listings In May
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- 3 Online Marketing Tools for Property Agents
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