Neutral Outlook For Malaysian Property Market In 2021: CBRE | WTW

January 26, 2021

Neutral Outlook For Malaysian Property Market In 2021_ CBRE _ WTW

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.

POST COMMENT

You may also like these articles

Minister Hopeful Of A Rebound In Housing Market Post-MCO

With residential property sales plunging during the enforcement of the Movement Control Order (MCO) to curb the spread of the COVID-19 pandemic, Housing and Local Government Minister Zuraida Kamaruddi

Continue ReadingJuly 2, 2020

A Virtual ‘New Normal’ Of The Property Market

In our previous article, How To Run A Successful Virtual Property Tour, we shared with you useful tips to conduct virtual tours as we progress into the ‘new normal’. The pandemic has left long-las

Continue ReadingJuly 24, 2020

Property Market To Remain Flat In The Next 12-18 Months

MyProperty Data Sdn Bhd (MPD) expects the property market to remain flat over the next 12 to 18 months due to the stagnant growth of prices.MPD manages PropertyAdvisor.my, a platform for investors, ho

Continue ReadingAugust 3, 2020

Will Bank Negara Slash OPR? – Analysts Weigh In

Analysts held differing views on how Bank Negara Malaysia’s (BNM) Monetary Policy Committee (MPC) would decide on the overnight policy rate (OPR) on Wednesday (20 January).Dr Afzanizam Mohd Rashid,

Continue ReadingJanuary 19, 2021

BNM Holds OPR At 1.75%, Warns Of ‘Downside Risks’ From COVID-19

Bank Negara Malaysia (BNM) has decided to keep the Overnight Policy Rate (OPR) unchanged at 1.75%, as it expects continued recovery for the global economy.The central bank said in a statement that the

Continue ReadingJanuary 21, 2021

Feedback