The PropertyGuru Malaysia’s Property Market Index (MPMI) report has revealed a downward trend in asking prices across all four key markets of Kuala Lumpur, Selangor, Penang and Johor.
Overall property asking prices in Malaysia dropped by 1.34 percent this quarter; in contrast to the 0.38 percent increase registered in Q2 and 0.63 percent increase in the first quarter of 2020.
For the first time this year, all key markets saw a fall in prices, indicating that this could be more than a quick dip.
With the latest implementation of the Conditional Movement Control Order (CMCO) after cases increased in a majority of states, PropertyGuru, believes that under these new restrictions, current and future commercial activity will be impacted.
This leads to a dampening effect on asking prices and the overall property market.
Johor registered the sharpest decline in Q3, where asking prices fell by 2.97 percent. Kuala Lumpur and Selangor projected weak figures as well with 1.35 percent and 1.04 percent contraction respectively.
Penang saw a slight contraction of 0.64 percent this quarter. With a slight downward dip in asking prices, Penang is a stable haven for those who wish to preserve their assets through property investments.
According to the National Property Information Centre (NAPIC)’s Property Market Report, H1 2020, the Malaysian House Price Index saw a marginal quarterly decline of 0.7% from the first quarter.
The report indicated that asking prices may continue to take a dip in the months to come. Despite these findings, there is a silver lining as it may unlock pent-up demand for millennials looking for affordable homes.
“With the loss of income and employment brought on by Covid-19, the property market and economy at large needs time to recover. The impact of the Covid-19 outbreak is undeniable, and it will take time to get the economy back on track as many Malaysians struggle with the loss of income and employment.
“Our recent study has shown that up to 81% of the Malaysians we surveyed have the intention to own their own homes by 2021. Properties priced below RM700,000 are seeing interest as many are eager to upgrade or pursue bigger spaces after the discomfort experienced during the lockdown,” said Sheldon Fernandez, Country Manager, PropertyGuru Malaysia.