The release of COVID-19 vaccines expected to relieve buyers
2020 has been a tough year, but the Malaysian property market has responded better than anticipated, placing the market into a good situation for the upcoming year. As vaccines are believed to be available for the public in 2021, the industry gets a glimpse of a positive outlook, reported PropertyGuru Malaysia.
The key trends that will influence next year’s real estate industry as identified by PropertyGuru Malaysia are: conducive interest rates to continue providing lower financing, continuation of mega projects to create multiplier effects, HOC to boost homeownership in 2021, rising virtual tours and online sales, and increase focus on affordable housing for the B40 segment.
However, home seekers will face a difficult task in qualifying for loans, since banks and other financial institutions will become more frugal and cautious until the economy has evidently stabilised.
Consumer behaviour and sentiment will be highly influenced by job and financial security in 2021, seeing that the pandemic has already halted national GDP growth (contracted by 4.5 percent in 2020) and heavily affected corporate revenues.
To boost consumer confidence, the government will need to introduce measures in Budget 2021 that train and upskill workers, increase employment opportunities, incentivise companies to hire domestic talent, and subsidise wages.
The residential sector will continue to be a buyer’s market in 2021, crowded with discounts, promotions, and rebates from developers.
Analysis based on consumer search intent in Malaysia’s key states shows that Klang Valley became of higher interest to buyers in 2020. Klang Valley had the highest leads generated month-on-month so the area is assured for advanced growth in the future.
All in all, the economy is presumed to revamp in 2021 and the property market will follow in its footsteps, but the post-COVID reality of a rough recovery journey is bound to happen.
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