KUALA LUMPUR: The Malaysian property market has been fairly sustainable as it underwent a consolidation mode despite the Covid-19 pandemic in the past 12 months.
Integrated real estate solutions provider Jones Lang Wootton (JLW) deputy managing director Prem Kumar (pic) said the pandemic is a blessing in disguise as it brought background issues within the market to the forefront to be given more focus by developers and the government.
“Some of the issues we saw was the oversupply in the office segment. Now developers in the commercial side have taken a few steps back and have stopped new office development at this juncture and focus on other types of products that can sell and be sustainable so that they do not become a white elephant, ” he said in a virtual roundtable panel organised by PropertyGuru Group.
He said affordable housing is also given more attention as authorities and developers reassessed and refocused on what is required to ensure both consumers and developers could reach a balance in terms of product offering and expectations in the future.
Prem Kumar said although the National Property Information Centre (Napic) reported a decline in the overall property sector in 2020, the market was already in a down trend since 2017/2018 due to those prevailing issues.
However, he said the reduction in the number of transactions does not show any significant indicators of having a huge potential of collapse.
He said Covid-19 was not the main reason for the softer property market but it was more due to the supply and demand factors, as well as the market concentration that led to it.
“Covid-19 has opened the eyes of many stakeholders of how the market can be versatile and be sustainable.
“As the property market is readjusting itself, this will also lead to greater stability for the real estate market in the future, ” he added.
Napic reported that the Malaysian property market recorded 295,968 transactions worth RM119.08bil in 2020, a 9.9% and 15.8% year-on-year decline in volume and value, respectively, compared with 2019. — Bernama