‘Property market is stable despite virus pandemic’

MELAKA: The property market here is stable despite the adverse impact of Covid-19, according to the Real Estate and Housing Developers Association (Redha).

Its Melaka chapter chairman Datuk Seri Ngoh King Hua said properties in the state were still considered affordable, with minimal impact on unsold units.

“The segment facing slower sales is the high-end and posh units,” he said in an interview.

Ngoh said there was a balance in terms of supply and demand and not much speculative buying.

He said the bulk of property buyers in the state did so for personal use, adding that developers here were focused on building medium-range properties which had more demand.

“We have takers for properties here, unlike in Johor and Penang. The main factor is affordable pricing,” he said.

Ngoh said the Housing Ownership Campaign (HOC) package introduced by the government was also a boost for local developers.

A real estate agent, who declined to be named, said most of those selling their properties here had procured it with the aim of venturing into the Airbnb online platform and providing homestay services.

“Most of these owners had highly depended on tourism to generate revenue and are now forced to put up their properties after running into financial constraints.

“But surprisingly, there are also a high number of prospective buyers who have shown interest in procuring these properties, especially those at strategic locations.”

The agent said some property owners were able to cushion the financial impact as they had cash reserves to service their monthly bank loans.

“Many are also upbeat that the situation here would return to normal, latest by the end of the year, and continued to maintain their properties,” he said.

Meanwhile, checks on properties for sale on online platforms showed that there were close to 50 subsale properties, mostly terrace homes.

Most of these properties had come up for sale since the movement control order started on March 18.

They are located mainly in suburban areas and away from the city centre.