FREE MALAYSIA TODAY. 1ST SEPTEMBER: The Covid-19 pandemic has sowed “so much confusion” about the property market that no one quite knows where it is headed.
Property agents who are working the ground might have some idea, so a survey was conducted among these agents.
The main takeaway from the survey is: if you are a property owner, with the falling transaction volume, falling enquiries and falling prices, “if you are able to hold off selling, it would be advisable to hold (on)”.
The survey found that “only 6% (of those surveyed) would advise owners to sell in this market condition.”
The survey, conducted between January and May of this year, was commissioned by the Malaysian Institute of Estate Agents (MIEA). The sample size of about 500 covered all states including Sabah and Sarawak.
The survey included landed to high-rise housing, commercial shops and shop offices and industrial premises. It excluded purpose-built offices.
Universiti Tunku Abdul Rahman head of programme for Master of Business Administration (Building Management) and Master of Real Estate Development Chin Hon Choong said the objective of the survey was to understand “what is happening on the ground” and “where the market is heading” in both the primary and secondary markets from the perspectives of MIEA members and non-members who are from other property-related associations.
Surprisingly, although 67% claimed they suffered a drop in commission, more than 75% said they would remain in this chosen career path “throughout their lifetime.”
Despite the overall “doom and gloom”, real estate professionals are generally satisfied with their career despite the ban on viewings at the end of May until Aug 26.
MIEA president Chan Ai Ching said the government lifted the ban on viewings from Aug 27.
“Our view is that viewing should only be conducted when it is necessary and if the client insists that he needs to see the place,” said Chan.
Both Chan and Chin said the property market is a very complex animal involving both the primary market – buying from a developer – and the secondary market, which is dealing directly with the owner.
It is also divided into different segments, housing, commercial and industrial. Offices were excluded from the survey.
The survey found that property prices are generally “more realistic” with owners more ready to adjust prices in order to be more competitive.
In the primary market, there is a general perception that prices are decreasing.
“Usually, a decrease in property prices (would) lead to higher transaction volume but this isn’t the case from the survey findings.
“There are two ways of looking at this: firstly, the secondary property prices are holding, secondly, buyers are cautious,” Chan said.
Just as buyers are exercising caution, real estate agents are also “not optimistic” about the market recovering in the second half of the year despite the low interest rate environment.
“Most are of the view that the property market will take some time to recover,” Chan said.
Different factors affect sentiment in the respective segments but suffice to say that despite developers and agents providing virtual and digital tours, recovery from the Covid-19 pandemic ranks among the top reasons for sentiment to return.
Other contributing factors include the economy and job stability.
The Malaysian home ownership campaign and its slew of goodies, which ends Dec 31, 2021, ranked fourth.
If the secondary market moves up steadily, the primary market will also move up. We can’t just boost sales in the primary market. There has been too much focus on the primary market,” Chan said.
Another key takeaway from the survey was that landed residential and industrial premises remain resilient.