Property players expect Malaysia’s property market to witness a robust recovery from 2022, buoyed by the feel-good factor on the vaccine rollout.
Michael Kong, President of the Association of Valuers, Property Managers, Estate Agents and Property Consultants, said that there would be a pent-up demand that will spur the property market after the COVID-19 curve within the country is flattened and he government lifted the movement restrictions, reported The Malaysian Reserve (TMR).
“We can see this in the last two financial crises. The Asian financial crisis struck us in 1997 and the market did tremendously in 1998, but recovered almost immediately in 1999,” said Kong during a panel discussion at the virtual 2021 Malaysian Housing and Property Summit.
“Same goes for the subprime mortgage crisis in 2008, which plunged the market in 2009 and subsequently, rebounded ferociously to a new peak in the value of transaction in 2014,” he added as quoted by TMR.
With the vaccination programme in full force, the pandemic is forecasted to be under control by end-2021 before a robust recovery starts in 2022, he said, adding that the property market may register some serious growth in 2023,
Nevertheless, Kong described the present climate as conducive for property investment, with the low-interest rate regime attracting higher investment consumption as well as growth within the market.
He noted that the government’s RM15 billion allocation under the Budget 2021 to ensure the continuity of mega infrastructure projects would provide the much-needed boost to the property sector.
“There is also the Home Ownership Campaign that runs until year-end. This will also be the added impetus to house buyers to purchase in a down market now and wait for the recovery starting next year,” he said.
Meanwhile, Kong has urged the government to reactivate the Malaysia My Second Home initiative, saying this would attract foreign funds and talents which could help boost the economy.
“The government announced the review of the programme has been completed and ready to be presented to the Cabinet for approval. But as of now, we still have not heard any news,” he said.
Koh said the government should simplify the rules and guidelines, which should be consistent with policies, in order that foreign investors may have a friendly, welcoming and safe environment for work and play.
Meanwhile, Datuk Koe Peng Kang, President of International Real Estate Federation Malaysia, encouraged property industry players to remain optimistic, considering the possibility of Malaysia achieving herd immunity by October.
“We are at the end of the tunnel now, and the economy will reopen when we hit herd immunity, so the property market must not give up,” said Koe as quoted by TMR.