If your Hong Kong friends asked if they should buy a Malaysian property, what would be your reply? Hopefully it’s a positive answer yeah. For me, I will tell them about the potential as well the fact that they could buy and enjoy the same protection as local Malaysians. Remember that earlier article saying that HK buyers buying 50-100 Malaysian properties every week? Well, it seems that the interest has seen a dramatic stop. Major culprit? COVID-19 (a.k.a. Coronavirus).
Article in themalaysianreserve.com VPC Realtors (JB) Sdn Bhd Asia-Pacific property consultant Bruce Lee told The Malaysian Reserve, “For the time being, foreign demand for Malaysian properties, particularly from China and Hong Kong, are slowing down or almost stopped as they (tourists) have stopped coming (to Malaysia) due to the coronavirus outbreak.”
Lee added that it’s too early to tell what’s the actual situation though. He said, “When the coronavirus issue is over, perhaps in six months’ time, I anticipate demand from Chinese and Hong Kong buyers to improve tremendously due to bad experience for those who didn’t buy or own property overseas.” Recent reports from Chinese international property portal Juwai.com and Malaysian real estate agency network IQI Global showed mainland Chinese buyers bought RM8.4 billion (US$2 billion) worth of properties or 12.1% of the overall transaction value in 2018. But the amount sold only accounted for 0.4% from the total property transactions. Please refer to the Article in themalaysianreserve.com
By the way, it’s not just property yeah. Car sales are down. Smartphone sales are down. In fact, even banks are scanning your temperature before allowing you to enter! Perhaps not all banks yeah. Fortunately for the popular malls, a slightly smaller number of visitors is still acceptable especially under current circumstances. So many people are choosing to work from home too. Anyway, the bosses are also very worried too.
Fortunately, stimulus is coming… I seriously hope that the peak for COVID-19 is coming soon, especially with a hotter season of spring arriving soon. This should help to destroy the viruses easier and faster too. As for the property market, we should not be relying only on foreigners yeah. Let’s not have a situation where the foreigners are buying double digits of our properties. That’s definitely not healthy for us. Happy buying.
Next suggested article: Hong Kong’s wealthy target: Singapore, Malaysia and Taiwan.