by Anders Ong

2020’s most exciting year of the decade since year 2008-2010, everyone is donning a face mask and take sanitizer whenever they go; cleanliness is becoming a habits of Malaysians daily life, online food services are becoming more reliable and property had to go through more changes into online.

THREE Events That Actually Happened & Relatable to Property Market

1. Bank Negara lowers Overnight Policy Rate by 25 bps to 2.5% on 3rd March 2020: –

The lowest Overnight Policy Rate recorded a decade ago were as follow: –

The lowest OPR rates were recorded in the previous crisis before the Property Bull Run started as the lending rates for mortgages are getting low and ease of buying properties offered.

Remarks: Attractiveness in getting mortgages for purchasing properties.

2. Decrease in Statutory Reserve Requirement (SRR) Ratio for Banks: –

The Bank Negara Malaysia had announced the lowering of Statutory Reserve Requirement (SRR) by 100 basis point from 3.00% to 2.00% effective 20th March 2020, which will release approximately RM30 Billion worth of liquidity into Banking system.

Remarks: More money in the market for mortgages.

3. Bank Negara Malaysia Announces Automatic Moratorium: –

The Automatic Moratorium enables the deferment of conventional/Islamic mortgage or financing repayment up to a period of six months. During the period no late penalty will be imposed as well but need to meet the following criteria: –

• Not in arrears exceeding 90 days as at 1 April 2020; and
• Denominated in Malaysian Ringgit.

Remarks: Existing home owners could reassess and reduce their high interest debts.

FOUR Crises That Actually Happened & Relatable to Property Market: –

1. Airbnb Operators & Co-Work Spaces are affected by the New Coronavirus Lockdown: –

The Malaysia government has imposed 25 -day Movement Control Order (MCO) from 18th to 14th April nationwide to prevent the further spread of Covid-19. It was later announced to further extend another 14 days to 14th April 2020. Notwithstanding that, travel bans in some countries also cause the tourist market for Airbnb and digital nomad for Co-Work space to reduce. Making most Airbnb operators and short stay business making losses during the period.

Remarks: Some Airbnb operators are selling their businesses and some convert their units to long tenure rental.

2. Property owner whom are affected by the Lock Down Are Offering Their Properties: –

SOME home owners whom have multiple properties are offering their property at lower prices to sustain their main business. Properties which had been left vacant during the past and waiting for the perfect prices are now being offered at lower prices in order to reduce their debts.

Remarks:  Not all owners are desperate though as some owner have a huge buffer.

3. Slower Property Market Transactions and Enquiries: –

Property viewing are forbidden during the lock down period making it hard to do any transactions. For some owner whom had waited for few months to find tenant, they had to wait another month. For owner whom are rushing to sell of their property, they had to delayed the plan.

Remarks: Most tenants and buyers had also delayed their plan to view the property.

4. Tenants looking for Easy Way Out into Reducing Rental or Saving Money: –

Upon the announcement of Automatic Moratorium many tenants are taking advantage towards the landlord. Tenants are asking for discount or non-payment of rental due to deferred loan repayment which they assume as “No Need Pay Bank” for the landlord and they need some cash saving security due to the Lock Down.

Remarks: Landlords are not obligated to reduce the rent or free rent as the mortgage interest will be charged after 6 months.

Anders Ong – PEA, Property Investor, Writer, Speaker, Real Estate Coach, Property Market Analyst & Author of Back To Property Investment To Create Wealth

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Being the new industrial hotspot of Penang, Batu Kawan is increasingly on the radar of the property investors owing to its well-planned infrastructure and future potential with several significant developments being planned. Located only 20 minutes away from Bayan Lepas Free Trade Zone and within a close proximity to the Penang Second Bridge, Batu Kawan is now the choice location for internationally renowned brands such as IKEA, Hotayi, Inari Technology, Honda, Western Digital, HP Malaysia, Boston Scientific, Flex and many more.

Golden Gateway, strategically located at the southeast of Batu Kawan, is only a 10 minutes’ walk distance from Batu Kawan Industrial Park via the new link bridge. Ready to occupy soon, the 54 units of freehold semi-D factories are conveniently accessible via Penang Second Bridge and North-South Expressway.

Being centrally located within several established industrial parks, making it a strategic choice of industrial property investment in Penang. Gateway 1 has the advantage of covering the traffic moving from island to the mainland while Gateway 2 makes delivery from mainland to island more cost-effective, enabling businesses to move up the value chain.

Golden Gateway, scheduled for completion in the fourth quarter of 2020, offers a 4-in-1 integrated business solution that accommodates the needs of light and medium industries. It features:

• PRODUCTION space with a column-free 28ft triple-volume ceiling height and 18ft front-loading area catering to your seamless processing needs.
• WAREHOUSE that provides sufficient storage space for your logistics and inventory requirements;
• SHOWROOM with large glass windows and ample display space to ensure your items are well presented in the interior and visible from the exterior;
• OFFICE space to create a proper environment for flexible and comfortable working experience.

Golden Gateway is set to be the hottest industrial investment in Batu Kawan.

SITE PROGRESS

SITE PROGRESS: Golden Gateway (Aug 2020)

SITE PROGRESS: Golden Gateway (Feb 2020)

SITE PROGRESS: Golden Gateway (Sept 2019)

Actual view from Ferringhi Residence 2 (FULL SCREEN)

Ferringhi Residence 2, a brainchild from one of the most prestigious developer Mah Sing, is indeed a luxurious home with breathtaking elevated sea views located at the most famous popular beach resort of Batu Ferringhi. With its strategic location of just a stone’s throw away to the heart of Georgetown and with the upcoming Penang LRT project, this freehold project will only ensure a seamless connectivity between your home to the inner city.

Nothing beats coming home to wholesome lifestyle facilities after long day at work. Relax by taking a dip in the infinity pool, rejuvenate in a spa or simply take a jog and work out in the breezy green surrounding. Make your way to the rooftop and catch sunrise and sunset with an ocean-view backdrop and breathe in the beauty of your surroundings.

Resort style condominium designed predominantly in a North-South direction. All units design will most living spaces having approximately 15 ft wide opening direct view towards outdoor.

Each unit is designed to have good natural ventilation and lighting. The living, dining and kitchen are layout in an open plan fashion to enhance spaciousness with a resort feel.

The unit layout is adapted for modern interiors that maximises visual link to the exterior. Soothing natural daylight and all the landscaped gardens that surround the units are brought into the homes with generous provisions of glazed windows.

Find out more about Ferringhi Residence 2

LOCATION MAP

The Real Property Gains Tax (RPGT) should be zeroized (as it was in 2007) till the end of the year to help boost the already soft real estate market in the country, said the Malaysian Institute of Estate Agents (MIEA).

This will help reduce losses of property sellers who are facing a demand from buyers to reduce prices in light of the economic downturn and the impact of the current COVID-19 pandemic, it said in a press statement today.

To help Malaysian property sellers, it also suggested that the collection of Sales and Services Tax (SST) for real estate transactions be placed in ‘abeyance’ until the end of the year to help sellers from having to incur additional costs.

For property buyers, it proposed that a transfer of 10% of funds from Account 1 of the Employees Provident Fund (EPF) into Account 2 to provide liquidity for the purchase of homes or assistance in repayment of loans after the moratorium of six months declared by Bank Negara.

It added that MIEA had in previously proposed for Interest Only Loans for the purchase of properties to be introduced. “Perhaps this would be the right time for this to be considered especially after the six months moratorium as a longer-term measure for first time house buyers,” it added.

Source: EdgeProp.my