KUALA LUMPUR – On behalf of iProperty.com.my, we would like to share our thoughts on National Property Information Centre (NAPIC)’s the latest report on Malaysia’s 2020 property market activity.
According to the report, the property sector recorded 295,968 transactions worth RM119.08 billion in 2020, a decline of -9.9% in volume and -15.8% in value compared to 2019. Meanwhile, the residential property market saw a -8.6 drop in value and a -9.0 drop in volume.
The decline is in line with iProperty.com.my’s finding in its 2020 Portal Demand Analytics presented in January 2021, in which the national subsale residential property demand was recorded at -1.3%.
The lower transaction trend is not surprising given that our country’s economic activities have been impacted by COVID-19 for the past year. The high unemployment rate caused by the pandemic has affected the property demand as Malaysians prioritised essential needs and services.
On the flip side, these unprecedented times have encouraged Malaysians to shift their property buying journey to digital platforms – we are seeing more interest and activity on iProperty.com.my, especially in terms of property enquiries. Malaysians spend more time on our site during the pandemic, with over 6 minutes on Site.
In particular, visitors aged 25 years old and above spend 31% more time browsing for sale and rental property listings, when compared to the nearest competitor. This rising shift to online property searches outlines a positive property market sentiment among consumers and their desire to make more informed property decisions.
iProperty.com.my strives to assist Malaysians to make smart property decisions through our proptech tools such as LoanCare, a home loan eligibility indicator that helps to calculate and compare home loan options with up to 17 banks. We also offer homebuyers a comprehensive view of subsale property price information, including the latest transactions through our property data site, Brickz.my.
Looking ahead, we hope there will be an improvement to the job sector to see a tangible recovery in the property market. At the moment, the market is being kept alive by low interest rates, cash handouts by the government through initiatives such as Prihatin Rakyat Economic Stimulus Package (PRIHATIN) and Short-term Economic Recovery Plan (PENJANA).
Furthermore, we believe the Homeownership Campaign (HOC) continues to help aspiring homebuyers and contribute towards bringing down the overhang property stock. Thanks to these initiatives, the current environment is more conducive for people to buy a house.
However, it may not be feasible for everyone as buying property is not a simple one-off transaction. Homebuyers will have to commit to monthly repayments and this is only possible for those with a steady income stream. Hence, the health of the property market largely depends on the employment level in Malaysia. The rolling out of the Covid-19 vaccine is also highly crucial for us to see any uptick in property activity later this year.
On the upside, the recently announced MRT3, which recently has gotten the approval of the government, the revival of the East Coast Rail Line (ECRL), and the construction of the Rapid Transit System (RTS) will see more jobs being created. We will also perhaps witness a boon to the surrounding areas of these infrastructure projects, which can only be beneficial for the property market and homebuyers.
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