Tey Yong Qing Explains Recovery of Malaysian Real Estate

Inflation comes with difficulty. It affects every sector. The Malaysian real estate industry has seen the effects of inflation.

The price of properties has depreciated, buyers are scarce, and sellers are not selling well. Inflation does not mean an increase in the income of Malaysian citizens. This is the main reason demands for properties have declined. Whereas, there is an increase in the price of materials used to build properties.

The Growth and Development of The Malaysian Real Estate Sector

It is not only the real estate that suffers. Prices of commodities, natural resources, and other goods have gone up. If these products don’t have high prices, inflation would not be as high. Since other sectors are facing high price rates, the economy is affected. People can no longer shop as they want and they don’t even think of buying houses.

The economy is coming up gradually. Some developers take advantage of this to increase housing prices. It is believed some of them do so to balance the expensive cost of building materials. There is the problem of oversupply of goods and understanding for goods.

According to real estate agent Tey Yong Qing, the new budget didn’t include investment plans. The budget only lowered the tax imposed on property sales and nothing more. There are thousands of housing units waiting for buyers to acquire them. If nobody is ready to buy them, it will be a loss to the sellers or developers.

It was not stated how the industry can attract local and international investors. Leasing agent and property manager Tey Yong Qing has worked for more than eight years. He is a licensed agent and has worked with lots of clients. He is not sure how the Malaysian economy will be revived.

Future infrastructural developments were not included to boost the economy.

The Malaysian real estate industry will have to make do with existing infrastructures to aid their growth. There is little hope because the people show a lack of interest in buying properties last year.

Yet, experts believed that things will change in the coming months. It has been estimated that the rate of buyers will increase before the end of 2022.

Housing prices are not helping the recovery of the Malaysian real estate industry. It will be a rough growth rate.

If the prices of building materials come down, then housing rates will become affordable.

Also, the pandemic is still out there which has put a strain on some things. 

Investors are cautioned to be careful with their investments. They should investigate properly before they buy real estate shares and properties. If possible, they are advised to wait until the economy is stable so that they won’t lose their money. This is because inflated housing rates do not mean that the industry is doing well. Neither does it mean that the sector is stable.

Effects of Omicron

There is an increase in the number of people affected by Omicron in Malaysia. It already harms the market. It is affecting the customers’ mindset and economic development.

Towards the end of 2021, it was revealed that the increase in housing prices was too much. The difference is clear as compared to the housing rate before the pandemic. It shows the effects of COVID-19 on the economic growth of the country. 2021 investors thought this was an opportunity to make a profit and invested in properties. This added to the rate of inflation in the real estate sector.

Companies sold their shares at a double rate due to the presence of many investors. Investors ignored that the sector has had minimal growth for more than half a year. They didn’t know that there was an oversupply of goods and little demand in the market. Maybe if they had paid attention to these details, some would have invested wisely.

Recommendations

Property developers should build houses in the right places. Buyers want their properties to be located in good and secured places. Sellers should sell them for the right price. This will attract suitable buyers who can afford these properties.

“Sellers should give discounts and low-interest rates,” says Tey Yong Qing. They should go through their inventories and check what is wrong. Then they can find solutions to the problem and make sales.

If the designs of the houses are old, sellers can renovate the buildings to attract customers. This is because many buyers like new designs compared to old designs.

The government should regulate the prices of building materials and other things. This will stop sellers from adding the extra cost of building to the selling rate of their properties.

The ministry of housing should correct the imbalance present in real estate.

The government should encourage developers to build outside urban areas to reduce the cost of housings.

Conclusion

If the recent pandemic is contained, people will feel safer and work more. Tourism will have a boost, more revenues will be generated, and other sectors will improve. Demands for goods and services will increase and oversupply will reduce.

Stability in real estate can be achieved if the prices of raw materials are normal and people earn more. It will happen if more jobs are provided, the economy is stable, and the rate of interest is reduced.