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Before the global health pandemic, there was another thing that united the world: the inaccessibility of buying a house for the majority of its people. Malaysians have been complaining about unaffordable housing for quite some time now.
Now, with the Covid-19 pandemic affecting the global economy, there’s a silver lining for those who have been wanting to buy their own house: a predicted drop in property prices due to the incoming recession.
House sellers may not be too happy, but for the majority of millennials who have never been able to afford a house of their own, a property drop of up to 20% will certainly make buying a home easier for a lot of people.
According to The Edge Markets, the Malaysian Institute of Estate Agents (MIEA) president Lim Boon Ping said that the real estate market will shift into a buyer’s market during the online Asean Real Estate Forum. Previously, the market was in a seller’s market, meaning that sellers were able to price their properties as they liked (so, higher).
Currently, the speculation is that Asean countries will suffer for a little bit this year before having a positive rebound in economic activities after that.
The Indonesian Association of Real Estate Agents (IAREA) vice-president Jaya Cahyadi noted that there will be a shift in the concentration of wealth following Covid-19.
According to him, those involved in the production of medical supplies such as hand sanitisers and face masks will likely have more capital. Industries who have proven to be essential during the MCO have seen a large surge in business growth, such as food delivery services.
High-end Malaysian property will still be attractive to overseas clients from Singapore, but our regular Malaysian millennial might just be able to buy their dream home soon.
Anne is an advocate of sustainable living and the circular economy, and has managed to mum-nag the team into using reusable containers to tapau food. She is also a proud parent of 4 cats and 1 rabbit.