It is inevitable that the housing industry in Malaysia will suffer from the economical downfall due to the Covid-19 pandemic.
A recent report has shown that the third quarter (Q3) of 2020 reveals a downward trend in property asking prices across four key markets of Kuala Lumpur, Selangor, Penang and Johor.
The PropertyGuru Malaysia’s Property Market Index (MPMI) report has revealed that the overall property asking prices has dropped by 1.34 percent in Q3 2020. These numbers are in contrast to the 0.38 percent increase registered in Q2 2020 and 0.63 percent increase in Q1 2020.
The fact that all four key markets saw a fall in prices for the first time this year, proves that it might take a while before the housing industry bounces back into growth. PropertyGuru believes that under the latest implementation of the Conditional Movement Control Order (CMCO), current and future commercial activity will be affected.
According to the numbers, Kuala Lumpur and Selangor projected weak figures in Q3 with 1.35 percent and 1.04 percent drop respectively, but Johor registered the worst decline, with asking prices having fallen 2.97 percent. Meanwhile, Penang suffered the least with a 0.64 percent contraction, making the state a stable haven for those who wish to preserve their assets through investing in property.
The National Property Information Centre (NAPIC)’s Property Market Report for the first half of 2020 (1H 2020) revealed that asking prices may continue to take a dip in the months to come. However, PropertyGuru Malaysia country manager Sheldon Fernandez said, “Despite these findings, there is a silver lining as it may unlock pent-up demand for millennials looking for affordable homes.”
If the trend continues as we move into 2021, younger buyers who have been saving up to purchase a property might have a chance to secure their dream home for a cheaper price.