The pandemic in 2020 affected the property market in Malaysia greatly in such a way that real estate investors have to consider very well before buying property. According to Tey Yong Qing after the Malaysian government implemented total lockdown as a means to curb the spread of the Covid19 virus. Things become difficult for many real estate agents. Many of the property developers had to suspend constructions during the lockdown period, all of which contributed to Malaysia having very low property transactions that year in comparison to previous years. Property Malaysia showed recovery in 2021 when the lockdown was lifted and the economy reopened.
What Should Be Expected In The Malaysia Housing Market
Towards the end of 2021 there was little improvement in the property market and the Home Ownership Campaign program is part of what contributed to the improvement. This program was discontinued in December 2021 but if the government can extend the program to the secondary market in 2022 it will help and support homebuyers. With the new variants of the Covid19 on the rise, it is expected to see investors taking caution in the first and second quarter of the year. As the variants may affect the recovery of the market, the rise in the price of building materials, and the interest rates that can increase anytime soon.
All these can cause the market not to recover as expected this year. But as the government plans to stabilize the economy and as consumers begin to secure jobs, interest in buying property will increase. Despite all the sentiments in the market presently buyers can still take advantage of the low interest to buy property as the market is expected to continue to recover. According to Tey Yong Qing, Looking at the performance of the property market in Malaysia towards the end of last year it may be the right time to start buying properties.
Reactivation Of Office Leasing
As companies return to their office spaces you can expect to see companies moving to new, better, and mostly smaller office spaces. Since most companies have adopted remote work and work from home systems. With flexibility in working that is expected to continue in 2022 which will bring more relevance and the adoption of co-working space. There is a possibility to see the renovation of old office buildings for other purposes or to meet up with the new demand from companies. The office leasing market will experience an increased vacancy rate as there is more supply and less demand.
Improve Activities In Residential Market
The first half of the year might be challenging to some extent but the residential market is expected to see improvement in transactions this year. Most of those buying property in the residential sector are focusing on landed homes. Probably due to the affordable price and the closeness of the apartment to essential amenities. Buyers are focusing on such properties. Especially apartments that are developed with secured and recreational facilities become more attractive to buyers. Activities in the residential property will improve in the housing market but the supply for medium and low-cost housing will be limited.
Increase Demand For Industrial real Estate
Due to the pandemic, many companies and businesses are forced to move online embracing a digital system of sales. As a result of this, there was an increased demand for warehouses where companies can store their products and goods. The need for warehouse facilities and rental is still expected to increase this year. Location and more technology advanced facilities also became an important factor for companies with warehouses so that they can serve their customers better.
During the lockdown period, people were prohibited from viewing property physically and conducting any physical sales which affected the sales of properties. Though some real estate agents have to adopt the use of technology by providing virtual tours and online sales of property. Many still prefer physical viewing and because of the pandemic, people are now searching for property in suburban.
Despite all that is happening in Property Malaysia there are still opportunities for those that are ready to take it. With the response received from people after the opening of the retail malls, it is evident that retail property is going nowhere anytime soon. As there is a balance that is being created between shopping offline and online and both working together to drive traffic.
From all the predictions and expectations of the property market for the year 2022, the growth will be gradual and improvement to continue provided the government can strengthen and stabilize the economy. Buyers are also expected to take advantage of this moment coupled with the low-interest rate to buy properties.
The recovery of the Malaysian housing market can be hindered by the weak economy, high property prices due to costly materials, and restrictions on loan applications. With various programs and initiatives, the Malaysian government has put in place to boost the property market and help people own their properties. Now might be a good time to buy one. With the recent event regarding flood, many home seekers now prioritize location. Any homes or properties that are located in areas that are prone to flood are being avoided. Hopefully, proper emergency response and disaster management plan will be put in place before the next monsoon, says Tey Yong Qing. The market is stabilizing but let’s see how it all plays out throughout the year.