Want to know something which always happen whenever the stock market is down? Or since February 2020 when COVID-19 starts to become so serious that Malaysia has our Movement Control Order (MCO)? Yes, when all these bad news happen, then there will be the potential for property prices to drop. When we really think a little deeper, these situations do not compel any homeowner to suddenly wish to sell their property at a lower price yeah. Well, except for the more desperate ones who would have sold at a lower price anyway whether or not there’s a crisis.
Then, why do stock market or COVID-19 affect property prices then? Well, it will affect businesses and businesses employ people. I hope everyone see the link now. When people lose jobs, of course they will face some difficulties, so they will be more willing to sell their properties at a lower price, especially if faced with cash buyers. Here are what some prominent people in Malaysia are saying about house prices yeah.
Article in edgeprop.my Savills Malaysia managing director Datuk Paul Khong says that there may be bargains for Malaysian homebuyers with the property market affected negatively by the current COVID-19 outbreak. He said, “No major property transactions are expected during the period and the property sector is expected to take a hit together with all other sectors.” He also expects more properties to be put up for auction in the near future.
Real Estate and Housing Developers Association Malaysia (Rehda) president Datuk Soam Heng Choon says that currently, there is no notable change in property prices, but property sales is close to a standstill during the MCO period. He said, “If the pandemic effect is prolonged, eventually the developers will have to readjust their selling prices for the sake of cash flow, as the more important thing is to survive.” Soam however believes that after the MCO is over, sales will slowly return. Please do read the full views of these two distinguished gentleman in Article in edgeprop.my
More auctions, I think is quite likely. Not just because there are slightly more units for auction because of financially troubled buyers but also because properties are usually not sold within the first few auctions these days. Thus, we may see more auction events but actually it may be for the same property for the 5th time… Yes, I am a licensed auctioneer and I conduct Land Office, High Court and bank auctions too.
I would like to say that I agree with Datuk Soam about sales returning after the MCO. I do think that when things return to normalcy, the developers should be able to sell their properties. This is true as long as they (developers) are building what the people wanted but could not sell it currently because no one is viewing and decisions to buy take longer than usual due to the many uncertainties yeah. Happy following and please stay at home unless truly necessary to go out for grocery.
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