The Malaysian property market is expected to remain resilient despite the economic headwinds this year due to COVID-19, with affordable housing and finding the right solutions to the property overhang continuing to be the main agenda of the government.

Valuation and Property Services Department Malaysia (JPPH) in a statement today said the close monitoring of the implementation of programmes under the National Housing Policy 2.0 (2018 – 2025) and various incentives introduced to promote home ownership among Malaysians are expected to contain the overhang situation in the coming year.

“As Bank Negara Malaysia expects the Malaysian economy to rebound in 2021, in tandem with projected global recovery, the property market is anticipated to move in similar trajectory.

“JPPH Malaysia will continue to monitor and evaluate the expected impact of the pandemic on the Malaysian property market and provide advisory to the government in ensuring that the market remains sustainable,” it said in conjunction with the launch of nine reports, including Malaysia Property Market 2019.

JPPH said there may be high near-term downside risks resulting from the unforeseeable outbreak of COVID-19 worldwide, which may dampen the anticipated economic growth, particularly for the first half year of 2020.

It said the globally-affected outbreak is expected to take its toll on the world economies and the Malaysian economy, in particular tourism-related sectors such as airlines, retail, food and beverage and hospitality; as well as the manufacturing and selected services sectors.

“The magnitude of the impact on the Malaysian economy would depend on the duration and spread of the outbreak not only in Malaysia but also in other countries, especially those that are Malaysia’s major trading partners.

“Many incentives are given by the government in the effort to cushion the impact on the property market. However, given the challenging market coupled with the downside in consumer and business community confidence, market activity and market absorption are likely to be slow,” it said.

The other reports launched by JPPH today include Property Stock Report 2019, Property Market Status Report 2019, Malaysian House Price Index 2019, Commercial Space Availability Report 2019, Purpose-Built Office Rental Index (PBO-RI) Klang Valley, Johor Bahru & George Town 2019, Residential Prices Quarterly/ Yearly Update 2019, RM10 Million Transaction Property Deals Volume 16 and Estate Land Sales Report Volume 26.

The reports indicate that the property market recorded a marginal improvement, with a total of 328,647 transactions worth RM141.40 billion recorded in 2019, 4.8 per cent higher in volume and 0.8 per cent higher in value compared with 2018, which recorded 313,710 transactions worth RM140.33 billion.

“Sectoral market activity performance improved marginally – residential (6.0 per cent), commercial (7.2 per cent), industrial (3.8 per cent) and agricultural (2.0 per cent) with the exception of the development land sub-sector, which declined slightly by 1.2 per cent.

“The residential sub-sector led the overall property market, with a 63.7 per cent contribution,” it added.

Source: Bernama

Plenitude Bhd is closing the operations of three hotels, namely Mercure Penang Beach and The Gurney Resort Hotel and Residences, both in Penang, and Travelodge Ipoh, Perak with immediate effect, and downsizing operations in the other hotels owned by it.

This decision is a direct result of the Covid-19 pandemic which had severely impacted the company’s hospitality businesses, Plenitude said in a filing to Bursa Malaysia here, yesterday.

“With domestic and worldwide travel restrictions, the company’s hotels have suffered a significant decrease of business and the company has no alternative but to downsize its business and operations.

“The company’s management is closely monitoring the situation and taking all necessary precautions to ensure safety of guests and staff,” it added.

Source: EdgeProp.my

Vezzara Residence, a medium-cost condominium by JKP Sdn. Bhd. at Permatang Pauh in Central Seberang Perai. It is located along Jalan Permatang Pauh, right opposite UiTM Penang Campus. This development is centrally located between Seberang Jaya and Bukit Mertajam, about 1km away from Residendi Permatang Pauh affordable housing scheme. Amenities within 3 km includes hypermarkets, hospital, university, banks and several popular eateries.

This development will see the construction of a 24-storey condominium, featuring 395 residential units with a standard built-up size of 900 sq.ft. Expected to be launched in 2022.

Project Name: Vezzara Residence
Location: Permatang Pauh
Property Type : Condominium
Land Area: (to be confirmed)
Built-up Area: 900 sq.ft.
Total Units: 395
Tenure: Freehold
Indicative Price: (to be confirmed)
Developer: JKP Sdn. Bhd.
Last Updated: June 2021

Location Map:

More hotels in Penang are expected to cease operations soon in the aftermath of the Covid-19 global pandemic.

After Jazz Hotel announced yesterday that it is shutting its doors, NST has learnt that two more major hospitality establishments here will follow suit.

The two businesses are Penaga Hotel and Jerejak Island Resort, both of which are managed by VHM Hotel Management Group.

Memorandums similar to Jazz Hotel’s, which are circulating on social media, claim that the two establishments will be closed by month’s end and their staff will be retrenched.

Malaysian Association of Hotels Penang Chapter chairman Khoo Boo Lim confirmed the hotels’ imminent closure, but stressed that the association has yet to be officially informed of the matter.

Meanwhile, a source within the hotel industry said that other hotel operators are feeling the pinch following the coronavirus outbreak, and have been suffering heavy losses over the past few months.

It is said the managements of most hotels here had invested heavily in their operations in expectation of good business during the Visit Malaysia 2020 campaign, which has been cancelled.

Source: NST Online

Malaysian developers should switch their focus to landed properties in respect of the peoples’ wishes to have a better quality of life, said experts.

Impetus Alliance chief executive officer and managing director Datuk Seri Michael Yam said affordable landed properties would be a better investment choice for Malaysians.

“The Covid-19 pandemic and the Movement Control Order (MCO) have caused more people to work from home or to stay at home, hence, they are looking to have better space.

“Developers should take note of the fact that people have realised that they want to have more public space with high-speed Wi-Fi or sound-proof room, for example,” he said at the Malaysian Institute of Estate Agents’s (MIEA) Multi-Sector Market Outlook Forum, yesterday.

He said the pandemic and the MCO undoubtedly had a significant impact on buying sentiment, which was already decreasing prior to these events.

Meanwhile, as to whether house prices will drop by as much as 30%, Hartamas Real Estate Group founder and group managing director Eric Lim disagreed.

He said the industry would be focusing on stabilising the whole market for the first few months after the MCO has been lifted.

“I disagree that house prices will drop by 30% because the government’s initiative to give moratorium on loan payments for six months will give some kind of stability.

“Sure, it will be slow at first, but it should pick up thereafter,” he said.

Previously, Bank Negara Malaysia (BNM) in its Financial Stability Review (Second Half 2019) report said Malaysian house prices remain seriously unaffordable relative to income, due to a pronounced and prolonged mismatch between demand and supply of residential properties.

Nevertheless, risks of a sharp correction in house prices will continue to be mitigated by firm demand for housing, particularly for properties priced below RM500,000, it said.

Source: EdgeProp.my