The Covid19 pandemic has hit everyone hard and many industries, including the property sector, suffered a major downfall due to the global health crisis. In fact, according to property consultancy firm Rahim & Co in its Property Market Review 2020/2021 report, transactions of properties dropped by 204,721 units within the 3rd quarter of the year 2020, which is almost 16% lower within the same period in the year 2019. But is all hope lost when it comes to property investment until the Covid19 situation is completely resolved? Most certainly not!

According to industry experts, there is a silver lining amidst the uncertainty in the upcoming year 2022. The property market is expected to see an uptrend in the months to come, thanks to the transitional phase of Covid19 from pandemic to endemic and also to the opening up of other sectors which also contribute positively to the situation. So what should property buyers and sellers, agents and investors expect out of the year 2022?

What The Experts Are Saying

At the recent 2021 Malaysian Housing and Property Summit organised by KSI and FIABCI Malaysia in July this year, the panellists concluded that property transactions will most likely increase in the year 2022, although prices may remain on a flat trend line. This expectation is most likely due to the increase in loan applications and approvals for properties in recent months and this positive outlook is further strengthened by strong pent-up demand among buyers, a resilient property market and lower interest rates by the banks. Also, campaigns such as the Home Ownership Campaign (HOC) and developers’ sales campaigns have also garnered encouraging results overall.

According to the President of International Real Estate Federation Malaysia, Datuk Koe Peng Kang, property industry players should remain optimistic with the market. He said, as quoted by a report by The Malaysian Reserve, that the economy will reopen once herd immunity is achieved, and therefore, the property market must not give up.

Not only that, in the Property Industry Survey 1H2021 and Market Outlook 2H2021/1H2022 released in October this year, most of the respondents remained optimistic about the economic and business environment for the year 2022. According to the Real Estate and Housing Developers’ Association Malaysia (REHDA) President Datuk Soam Heng Choon, there will be more buyers within the market due to the improvement in employment, salaries and job stability, and this recovery is expected to continue into the year 2023 as well.

How The Budget 2022 Helps

In line with the Malaysian Government’s efforts to recuperate the economy from the massive downturn caused by Covid19, the property sector will also see a hefty budget allocated for this purpose. A notable point in the Budget 2022 is the RM1.5 billion allocation for low-cost housing projects and another RM2 billion for a housing credit guarantee scheme for those without a stable income to purchase a home.

Among others mentioned in the Budget include the relief of RPGT tax that will not be applicable after the sixth year, tax exemptions for landlords who give rental discounts to businesses, multiple infrastructure developments, the Rumah Mesra programme and public housing upgrading programme.

These initiatives are not only expected to boost the economy, but also serve to assist the Malaysian real estate sector in recovering from the effects of the pandemic. It will also benefit and motivate first-time home buyers to increase their savings and purchase their own home.

Is The Demand Still There?

According to Henry Butcher Malaysia’s annual report, landed properties continue to be in high demand with a strong holding power among sellers in comparison to its high-rise counterparts. In the area of new projects, developers are aware that buyers are still on the cautious side and this could push the developers to come up with more affordable projects in accordance to the current demand.

Prices have also been reducing within the sub-sale property segment but it is important to note that certain areas that have a strong demand such as Damansara, Old Klang Road and Mont Kiara which are located within Klang Valley will continue to hold firm prices. This is due to the popularity of the areas as well as the scarcity of properties there.

A recent report by The News Straits Times revealed that developments in areas such as Shah Alam and Seremban are seeing a positive demand, due to the attractive pricing as well as better facilities and connectivity. This in return makes such areas a good property investment and capital growth choice.

Will It Be A Good Year To Buy?

This is a question that can only be answered with a certainty when we actually arrive in the year 2022 and analyse the market trend at that point of time. But fret not, most analyses seem to be favourable for property investment in the upcoming year, with more industries, job markets and businesses opening up again. If purchasing a property is in your to-do list for next year, you may as well start looking out because you never know, with the expected market uptrend, the odds may just be on your side!

The statement and information in the articles are the opinion of the writer and meant only as a guide. Any property purchase, rental or lease involve many legal issues and other complication depending on the individual facts and circumstances. Readers and Users are strongly advised to seek professional advise including from qualified and competent lawyers, bankers and/or real estate agent to verify the information and the statement before embarking on any purchase, rent or lease of any property. To the fullest extent permitted by law, we exclude and disclaim liability for any losses and damages of whatever nature and howsoever cause and arising including without limitation, any direct, indirect, general, special, punitive, incidental or consequential.