The property market is widely expected to start recovering on the back of a more positive outlook, says Knight Frank Malaysia
According to Knight Frank Malaysia, the country’s residential sector will remain repressed in 2021 until the country manages to curb the outbreak, reported The Star.
Sarkunan Subramaniam, the managing director of Knight Frank Malaysia, said: “There were fewer completions and launches in the first half of this year as the strict containment measures delayed construction works, project delivery, and completion of real estate transactions.
In the secondary market, no property viewings and on-site surveys have been allowed since June.”
Yet despite the challenges brought by the health crisis, Sarkunan and his team uncovered a pent-up demand in the housing sector, which was caused by the quick surge of recovery in real estate activity every time the government lifts the movement restrictions.
Deputy Managing Director Keith Ooi added that Kuala Lumpur’s high-end condo sector would still go through price correction because of the low demand amidst the growing inventory for newly built and existing developments.
Likewise, the property rental market will remain under duress due to low leasing demand.
“The economy is still in its recessive phase and market confidence is expected to return gradually by early 2022 as buyers and financiers are all on cautiously optimistic mode,” he noted.
“The property market is widely expected to start recovering on the back of a more positive outlook, following recent acceleration in vaccine drive, and strong interest from domestic investors shifting from the stock market to safer and less volatile alternative investment products.”
The Property Report editors wrote this article. For more information, email [email protected].
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