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Alarming development: Housing loan applications down tremendously

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In April, many agent friends told me that that agents are staying home since no viewings were allowed during the Movement Control Order (MCO). They are not the only ones, even law firms and company secretary firms were asked to close their offices because they are no considered essential service. As for working from home, not all companies are able to do it yeah. So, without all these stakeholders for the buying property process, of course the loan applications would fall. How much has it fallen? A LOT yeah. Happy learning.

Article in themalaysianreserve.com For the month of April 2020, home loan applications have fallen off a cliff; by 72.1% when compared to the same month in 2019. April 2020’s total loan applications was RM6.67 billion versus RM23.88 billion in April 2019 according to Bank nagara Malaysia (BNM) statistics.

Nationally, unemployment spiked to 5% in April and this is the highest since 1990. This increased further to 5.3% in May. There are an estimated 826,1000 jobless Malaysians. Loans for car purchases have also declined from RM642 million in April 2020 versus RM5.99 billion in April 2019. Loan growth is expected to surge in the second half of 2020 because the reopening of the economy has started and government has announced stimulus measures under the short-term National Economic Recovery Plan or Penjana. Please do refer to the full article here: Article in themalaysianreserve.com

Normalisation is continuing and yes, we do have that worry of a second wave. However, to have a lockdown of the whole Malaysia is not going to help the nation. We need a much more targeted approach. This is just like the moratorium which will now be targeted at the one needing it rather than everyone. We should have learnt from many other countries and continue to improvise so that we could care for the health of the people and the economy.

As for the property market, I continue to have a good feeling for it. I do think the number of buyers who could still afford to buy and wanted to buy remains strong. What we need to do is just to give them the right information so that they could make their decisions. Just to share that I went to view some projects in Rawang 2 weeks ago and every sales gallery I visited has potential buyers.

All are landed properties and some are gated and guarded, some have club houses and some have designs which my wife likes. Haha. I visited these: BRDB’s Tamansari, Low Yat Group’s Bandar Tasik Putri, Mah Sing’s M-Aruna, Glomac’s Saujana Rawang, Scientex’s Kundang Jaya and Guocoland’s Emerald Rawang. Happy visiting them too if you think Rawang could perhaps be a place to buy a home. No need to mention to them you saw their names in kopiandproperty.com, we do not have any affiliate marketing programmes with them.

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Next suggested article: Must – Know: The most searched areas in Malaysia. Is yours in the list too?

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