With Malaysia reimplementing the movement control order (MCO), CBRE | WTW does not expect the real estate market to post a better performance this year than it did in 2020.
In fact, the property consultancy firm does not see any promising market development over the next three months and has kept a “neutral” outlook on the property market’s prospect for this year, according to a Bernama report.
“Activities could be put on hold until a rebound and recovery phase takes place,” said CBRE | WTW Group managing director Foo Gee Jen as quoted by Bernama.
He believes that demand for the property market, mainly the residential segment, will be on a need basis instead of an expansionary mode.
Is now a good time to invest in property in Malaysia? Find out here!
For the next two years, CBRE | WTW expects overhang to conquer the residential market.
“However, the rate of urbanisation and demographic growth will provide minimal buying support especially for first time housebuyers,” said Foo.
“Pricing for the overall residential market will move sideways for the middle and affordable segment. However, there will be pressure and price correction for the higher end market and its products,” he added.
He noted that the pandemic has impacted transactions in most segments of the residential market by between 5% and 15%, particularly high-rise and luxury properties.
Foo expects the additional incentives offered in the ongoing Home Ownership Campaign – such as 0% Real Property Gains Tax, 100% stamp duty waiver, and uplift of the 70% margin of financing limit for third housing loan onwards for properties priced at RM600,000 and above – to increase borrowings by home buyers.
The stamp duty exemptions on Memorandum of Transfers and loan agreements under Budget 2021 are also expected to assist first time home buyers, while the low interest rate environment could stimulate economic recovery this year.
Make informed decisions when buying, renting and selling a house in Malaysia with PropertyGuru’s comprehensive list of guides.
