The real estate sector in Malaysia will remain challenging during the first half of 2021, according to consultancy firm Knight Frank Malaysia’s managing director Sarkunan Subramaniam. This is mainly due to the ongoing political uncertainties in the country amid the coronavirus pandemic. This had led property buyers as well as developers to rethink their future plans and strategies, Sarkunan Subramaniam said in a statement.
However, the Covid-19 vaccine will boost the hopes of the country’s economic recovery and lift overall consumer sentiment. Knight Frank recently released its Real Estate Highlights 2nd Half of 2020 research report. Newly appointed deputy managing director Keith Ooi told the media, “With Covid-19 remaining as a key concern, occupancies and rents are expected to decline moderately in the coming year.
“However, we anticipate that values of prime grade retail assets should remain relatively stable despite the rental decline, given their more resilient tenant and lease profiles, and the fact that yields will be buffered by the existing low interest-rate environment.”
Last year, it was reported that home sales in Malaysia were reducing and foreign investors were making fewer trips as an investment-for-visa programme remained suspended. Real estate agents in Malaysia were facing one of the toughest lockdowns during the pandemic and were clamouring for an overhaul in market policies to halt a housing glut.
According to National Property Information Centre (NAPIC), during the first half of 2020, the property sector recorded 115,476 transactions worth RM46.94 billion, a decrease by 27.9 percent in volume and 31.5 percent in value compared with the first half of 2019, which recorded 160,165 transactions worth RM68.53 billion.