Property owners willing to reduce prices to a more reasonable level

In a recent webinar hosted by the Malaysian Institute of Estate Agents (MIEA), the real estate industry is expected to come out unscathed.

The webinar by MIEA saw Eric Lim, group managing director of Hartamas Real Estate Group, Michael Yam, managing director of Impetus Alliance and Stephan Tew, director of Axis REIT Managers Bhd share their insights on the current real estate market outlook amid the outbreak and ongoing MCO.

The forum, moderated by Previn, pointed out that the nation’s property market saw signs of recovery before the outbreak.

He stated that there was no rush by the corporate sector to lease offices as both commercial and residential properties were also feeling the pressure of property oversupply.

Eric highlighted that before the MCO period, the gap between asking price of a property and the officer price was somewhat wider.

Taking into account the current situation, he said property owners were willing to lower down the asking to a more reasonable level.

“Hence this is a great opportunity to purchase residential properties if one has the financial ability,” Eric said.

Lim also opined that residential property developers are also offering more attractive packages which includes additional discounts and higher rebates.

In a recent annual report by Bank Negara Malaysia, house prices relative to income were said to be ‘serious unaffordable’ due to a prolonged mismatch between demand and supply.

Yam further stated that the current situation serves as a golden opportunity for developers to re-look into the market and expand their capacity.

“Our banks are much stronger and well capitalised now. Many large firms and public limited companies (PLC) are into liquidity financing rather than being dependent on bank borrowings.”

Lim added that many developers are also seeking for a joint venture with landowners, making it much more manageable in times of crisis.

Tew expressed a similar sentient as well. He said that banks are now more proactive this time around by offering stimulus packages and loan deferments to help many business owners and individuals during this time of crisis.

Yam has also expressed that the government should encourage more buy and sell activities, ultimately by lowering the RPGT momentarily as stamp duty and other charges help the government raise more money.

Lim added on that the relaxation of the existing lending policy by Bank Negara would also help spur the property market.

“Lowering of the foreign property buying threshold in Selangor would enable more foreigners to purchase properties., which would also contribute towards reducing the existing property overhang and address the glut in the property market,” Lim said.

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