PROPERTY MART RECOVERY NEXT YEAR
Government incentives have helped to stabilise prices, says PropertyGuru
THE property market is stabilising and will likely recover next year amid renewed consumer confidence, said property experts. “The property market will be influenced by Covid-19 development amid its lingering uncertainty, which may affect consumer confidence,” said PropertyGuru Malaysia country manager Sheldon Fernandez during the virtual “2022 Property Market Outlook” panel discussion yesterday.
He said a sustained improvement in consumer confidence would be linked to the Covid-19 fight.
“The improved vaccination rate, clearer government policies and gradual reopening of international borders will drive the economic recovery.
“We have seen stabilisation in property prices as the government provided incentives, such as the Home Ownership Campaign and Malaysia My Second Home Programme, to boost the property sector,” he added.
Fernandez said the gradual reopening of the economy and improved job security would create a more conducive environment for potential buyers and investors, despite a pricing mismatch in the market.
“The potential extension of government incentives will further boost the property sector. The revival of ongoing mega infrastructure projects will also add value to residential areas.”
The Malaysian Institute of Estate Agents president Chan Ai Cheng concurred that there could be a gradual recovery next year due to improved sentiments.
However, she said the challenge for the property market was to meet buyers’ and sellers’ expectations.
“Both parties should realistically reach a common ground. Then, they need to assess the situation carefully before deciding to buy or sell properties.”
Chan said buyers should assess their financial ability and needs before purchasing houses.
“They should also take advantage of the current low-interest rate and adjusted property prices.”
She said sellers should consider disposing of their properties only at optimum prices, or opt for renting it out to sustain their mortgage repayments.
Knight Frank Malaysia deputy managing director Keith H.Y. Ooi said a confusing standard operating procedure and political uncertainty had affected sentiment.
But he said with an improved vaccination rate and gradual easing of movement restrictions, there was now renewed optimism in the property market.
He said one of the challenges for the property market was price discovery due to a lack of transparency in housing prices and the availability of real-time data to mitigate the risk of oversupply and overhang situation.
“The sector needs to resolve the mismatch issue. Having realtime data will allow for better decision making. Data accuracy, transparency, and real-time data are crucial to address the mismatch in the property market.”
Ooi added that the best time to buy property would be during the low-interest rate period, although property prices were expected to increase.
Chan said demand for landed property remained the highest.
“Buyers want accessibility and amenities and these will attract buyers,” she added.