fbpx
Previous
Next

Advertisement Banner

5 reasons for property market recovery in 2021

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp
home for own stay

Many people ask me if the property market recovery will happen in in 2021 since I wrote this article: Property market transactions for WP Putrajaya, KL and Selangor showing V-shaped recovery. By the way, property market recovery does not depend on property market alone. It depends on the economic growth, on the actions taken by the government, monetary policies by Bank Negara Malaysia and many other factors including a positive sentiment which encourages people to buy a big ticket item such as a home.

Below would be the reasons for property market recovery according to PropertyGuru.com Their full press release is here. These are the five reasons which will help the property market to recover in H2 2021. Please note, they predicted recovery only in H2 2021. Before then, we may have much more action than right now. Do read on for the 5 reasons.

property market recovery
Photo by Maria Orlova on Pexels.com

1. Conducive interest rates to encourage homeownership

The Monetary Policy Committee (MPC) of BNM kept the Overnight Policy Rate (OPR) at 1.75% in its most recent review in November, citing significant improvement in economic activity during Q3 2020. 

Lower OPR allows buyers to lock in lower interest rates favourable to current financial standings, especially those finding it difficult to fork out higher monthly loan repayments.

2. Continuation of mega infrastructure developments to create multiplier effects

The Budget 2021, which was tabled at Parliament in November, has seen the Government allocated RM15 billion to revive and ensure the continuity of several mega projects, such as the Mass Rapid Transit Line 3 (MRT3) in Klang Valley, Rapid Transit System from Johor Bahru to Woodlands as well as Pan Borneo Highway across Sabah and Sarawak.

Additionally, the development for Kwasa Damansara, a massive township bordering Kota Damansara and Sungai Buloh with a gross development value of RM50 billion, will create more than 100,000 jobs and have about 10,000 affordable houses. 

3. HOC continues to spur buyers’ interest

The reintroduction of the government-initiated campaign has proved to be an effective measure to boost the market, which offers a number of incentives to homebuyers, and is expected to remain in play for much of the first half of 2021. 

4. Property Technology On the Rise

One positive outcome of a pandemic-challenged property industry is increased innovation and a greater focus on digital solutions. Key property players have accelerated the efforts to market products and engage with buyers through online initiatives. This bodes well with millennials who are well versed with e-commerce habits and make up a large segment of the house buying market. 

PropertyGuru hosted the region’s first largest multi-country virtual property expo which brought together 300 developers over 10 countries on one platform.

Other game-changers include data solutions, whereby easy access to real-time property transaction data would help create greater transparency within the property ecosystem – for buyers, sellers, agents, developers and financiers. PropertyGuru leads the fore with the recent acquisition of MyPropertyData. 

5. Affordable housing for the B40 segment

The Budget 2021 revealed that the government will be focussing on affordable housing in the coming year, announcing several measures that will incentivise homeownership among the lower-income (B40) segment of the populace. 

This measure will allow private developers to focus more on free-market housing while allowing the government to take the responsibility to provide more cohesive housing for the rakyat.

— end of PropertyGuru’s 5 reasons for property market recovery in H2 2021.–

Important notice

If we agree to what PropertyGuru is saying, then it may be prudent to start taking action now. That H2 is actually just 6 months away. Buying a property meanwhile will take months and not days. In fact one would also need time to accumulate enough down payment too. Happy investing.

Love to be updated on all investment news? Sign up for KopiWeekly. (only once per week of property, finance, investment news and more)

Please LIKE kopiandproperty.com FB page to get daily updates about the property market beyond kopiandproperty.com articles. Else, follow me on Twitter here.

Next suggested article:  V-shaped recovery in property transactions. Good news

2 thoughts on “5 reasons for property market recovery in 2021”

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

We love to hear from you (Facebook Comment)

LIKE us for property news update, FREE.

Previous
Next

Advertisement Banner

kopiandproperty.com

kopiandproperty.com

kopiandproperty.com is everything about property related writings and news. Enjoy reading with a latte.
Previous
Next

Advertisement Banner

LIKE us for property news update, FREE.

Property investment news everyday? Subscribe for free!

An article a day, keeps updated all the way.

Join 1,527 other subscribers

Property investment news everyday?

An article a day, keeps updated all the way. Subscribe for free!

join the family

Like us for daily investment news and more

Hit the like

%d bloggers like this: