Property market expected to be affected by Covid-19

Tan says developers would need to change their marketing and promotional strategies to reach out to potential buyers.

JOHOR BARU: Prospective property buyers are likely to benefit from the aftermath of Covid-19 pandemic as prices of properties might drop.

KGV International Property Consultants (M) Sdn Bhd director Samuel Tan said he expected the full impact from Covid-19 and the movement control order (MCO) to be felt in the next six to 12 months.

He anticipated that there would be more cases of property owners selling their properties as early as three months after the six-month bank moratorium ends.

“There are so many uncertainties and challenges in the global economy landscape in the coming months and Malaysia will not be spared, ’’ Tan said when contacted.

He said property owners were willing to sell their properties at lower prices and buyers could get good deals.

Tan said the low and medium-low cost house owners would be the most affected due to financial problems faced.

“At the same time, there are also buyers who are willing to forfeit the 10% deposit for the bookings made before Covid-19 and the MCO as they expect prices of properties to drop further, ’’ he said.

Tan said prices of primary properties could go down between 10% and 15% and about 15% to 20% in the secondary market.

Real Estate and Housing Developers Association (Rehda) Johor branch committee member Andrew Tan said the next six months to a year would be a challenging time for Rehda members.

He said while the national economic stimulus package by the government would help to ease the impact from Covid-19 and the MCO, the government need to further boost the economy post-Covid-19.

“The probationary period is important as it will give a clear indication of where the country’s economy is heading, ’’ said Tan.

He said concerted and continuous efforts were needed from the public and the private sectors to boost domestic spending and create confidence among consumers.

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