Residential property prices are expected to surge in 2021 after stalling this year due to the Covid-19 pandemic, according to a nationwide study by real estate sales and media company Juwai IQI.

In its Q1 2020 Property Index and Survey for Malaysia, Juwai IQI predicted that residential property prices would stagnate in 2020 with an increase of only 1.1%.

Group executive director Kashif Ansari said the drop in number of property transactions due to the movement control order (MCO) was also causing property prices to stagnate.

“The industry is optimistic, however, about a post-pandemic recovery and expects residential prices to rise by 8.6% by 2021.

“Amid all the uncertainty, property is viewed as a relatively safe investment that can provide cash flow.”

He added that Bank Negara Malaysia’s six-month moratorium on interest and principal payments for loans had provided relief to property owners besides easing the pressure on the real estate market.

The survey, which was conducted among more than 340 real estate agents from Feb 7 to March 19, also revealed that rental rates are expected to rise by an average of 1.7% through the end of 2020.

“The findings showed that Sarawak has the highest forecast rental growth at 5.4% in 2020. Penang has the most negative forecast, with rental rates there expected to fall by 5.8% in 2020.

“But looking forward two years, agents are more confident about rental rates. Nationwide, agents expect rental rates to climb by 7.1% by January 2022,” Ansari said.

He added that property would likely remain attractive to foreign buyers due to the country’s strategic location.

“Its close proximity to countries such as Japan, China, Hong Kong and Singapore, which are the world’s largest cross-border property buyers, makes it even more appealing.

“For investors and first-time home buyers, now is definitely a good time to consider getting into the market, as there are attractive discounts offered by developers.”

About 61% of real estate agents who participated in the research expected first-time local buyers to make more property transactions in 2020 than in 2019. Meanwhile, 55% of agents expected foreign buyers to conduct more transactions.

The survey also revealed possible consumer changes in property buying, with greater use of online tools such as virtual reality, 3D rendering and live-streaming, to facilitate marketing, research, and purchasing of real estate due to Covid-19.

Source: Free Malaysia Today

Saujana Prima, an upcoming residential development by JKP Sdn. Bhd. at Bukit Panchor in Nibong Tebal.  Located along the main road of Bukit Panchor township, less than 1km away from Nibong Tebal KTM train station. It is only a 10 minutes drive from Jawi toll plaza.

This development will feature a mix of single and double-storey semi-detached and terrace house, to be developed in two phases:

PHASE 1

• 2-storey semi-detached (4 units)
• 1-storey semi-detached (8 units)
• 1-storey terrace (38 units)

PHASE 2

• 2-storey terrace (38 units)

Project Name: Seri Saujana Prima
Location: Bukit Panchor, Nibong Tebal, Penang
Property Type : Landed residential
Land Area: (to be confirmed)
Built-up Area: (to be confirmed)
Total Units: 88
Tenure: (to be confirmed)
Indicative Price: (to be confirmed)
Developer: JKP Sdn. Bhd.

Location Map:

After four days without new Covid-19 cases, the Penang government is hopeful the whole state could be declared a green zone state by April 27 if no new cases are reported in all of its districts for 14 days.

Seberang Perai Selatan could be the first district to be a green zone on April 21, Chief Minister Chow Kon Yeow said.

“I have been informed by the State Health Department that based on the 14-day Covid-19 monitoring report, if there are no more further cases, all districts in Penang can be green zones on April 27,” he said in a media briefing today.

Find out which District/Mukim you are in

If there are no more additional cases, Seberang Perai Selatan would be the first district in the state to achieve green zone status on April 21.

However, Chow reminded everyone to continue to comply with directives under the Movement Control Order until the situation is really safe.

“Although the country is still recording new cases every day, the numbers have dipped below the 100-mark level compared to a month ago.

“Nevertheless, we still cannot afford to ‘relax’. Continue to obey the MCO until we are really in a safe situation. Stay home, and limit outdoor travel,” he said.

On the closure of several textile companies in Penang, the chief minister said the state government, through the Penang Career Assistance and Talent Centre had taken measures to carry out job matching and replacements for affected employees.

He said recently, the Esquel and Pen Apparel in Penang textile companies announced that they had shut down operations in Penang.

“The state government will look into their needs immediately, including job placements for local employees,” he said.

He said Penang is still capable of creating job opportunities for its people on account that its manufacturing sector has had RM13.3 billion in foreign direct investment approved.

“These investments are being rolled out and InvestPenang expects to create 13,000 job opportunities from this,” he said.

Source: Free Malaysia Today

Kedah, Perlis and Penang can be the first states in the country to be declared as Covid-19 green states, according to Health Ministry director-general Dr Noor Hisham Abdullah in a Malaysiakini report yesterday.

However, there is a catch to it.

According to Noor Hisham, the three northern states would have to continuously record zero number of new cases in the next two weeks. This is needed to pass the 14-day incubation period.

“Although, indeed, Kedah, Perlis as well as Penang in the last couple of days do not have any new cases reported, what is most important is we need to wait for the incubation period of about 14 days before we can say that the area is clean.

“So now we are in the process of looking into it. And if within 14 days there are no cases reported in the three states, then perhaps we can consider the states to be green states,” he told a press conference yesterday.

Malaysiakini said Noor Hisham was answering a question on whether the Health Ministry would consider relaxing the movement control order (MCO) on several states which have recorded zero number of new cases since the past few days.

A green zone is the designation given to areas that MOH says has no Covid-19 cases.

The government had said previously that they might impose movement control order based on zones, where green ones would have some relaxation in rules, while red zones would see the most strict enforcement.

So far, none of the 14 states and three federal territories in the country have been declared as a green state. Only certain districts have been marked as green areas so far.

According to the Health Ministry’s statistics as of noon yesterday cited by Malaysiakini, Kedah, Perlis and Penang have zero cases over the past 24 hours, while yesterday’s figures showed that Kedah had only one new case.

The Malaysiakini report quoting Noor Hisham said it was important that green zones are protected from Covid-19 infections.

This, according to him, would enable the ministry to clear the country from the pandemic.

“It’s important for us to protect the green area, (either it is a) green zone, or green state, green village, green district or green subdistrict.

“I hope that within 14 days we can identify that (more areas as green zones). If we identify that, we may consider to further protect the green area.

“That is our intention in terms of our exit strategy. To make sure the green area or green state is protected,” he said.

Source: EdgeProp.my

Property prices are expected to decline by as much as 20% in the next few months with more motivated sellers, as the impact of Covid-19 continues to unfold.

During the online Asean Real Estate Forum, Malaysian Institute of Estate Agents (MIEA) president Lim Boon Ping said that the Malaysian real estate market will shift to a buyer’s market, from a seller’s market previously, as a result of Covid-19.

As such, property prices at best could decline by 10%, and at most could decline by 20%.

That said, he noted that despite the implementation of the Movement Control Order (MCO) — which has resulted in no property viewings, moving in and out of properties, and sale and purchase (S&P) agreements being signed — there have been some property deals that have been closed without viewings.

“There are cases where negotiators [have been] closing deals where the buyers have not viewed the property,” he said.

He added that real estate agents in Malaysia should learn to use technology to enhance the services they provide following the MCO and Covid-19.

Regarding a report by the International Monetary Fund (IMF) stating that Malaysia would have the fastest-growing gross domestic product (GDP) among Asean-5 countries in 2021, Lim said that there are many voices who have different views on the matter.

“The message sent out is that Asean countries will suffer [this year]. But there will be a positive rebound in economic activities,” he said.

Meanwhile, Indonesian Association of Real Estate Agents (IAREA) vice-president Jaya Cahyadi said that there will be a shift in the concentration of wealth following Covid-19. As such, real estate agents should broaden their network and find those.

He cited that those involved in the production of medical supplies such as hand sanitisers and masks would likely have more capital and as such real estate agents should look at the owners of such businesses when broadening their client network.

“After Covid-19, you want to go after the right people in the right industries. Now is the time to find the right people,” said Jaya.

When asked if there would be an influx of Singaporean buyers into the Malaysia market, president of Singapore’s Institute of Estate Agents (IEA) Herman Yeo said Singaporean buyers would still buy if the property is within the high-end segment and is attractive enough.

Source: EdgeProp.my