The COVID-19 pandemic has jolted every industry in Malaysia and other countries in the world. The pandemic and the lockdown have also impacted property developers in Penang and the overall property market in Malaysia. Just like anyone in the world, for now, Malaysians are worried about their bread and butter instead of thinking about long-term property investments.
A lot of uncertainty is sure associated with this pandemic. Real estate, however, is expected to be affected for only a short period of time. Considering the circumstances, developers in Penang are still enjoying a stable demand for properties.
Therefore, it is important to evaluate the short-term effects of COVID-19 on the housing market in Penang. If you are looking to find out all the possibilities of investing in a property at this time, then this blog post offers the right piece of information for you.
According to property developers in Penang, the steps that were taken by the administration, such as the Economic Stimulus Package
and BNM's six-month moratorium
, have played a vital role in helping to lay a foundation for a rebound of the property market in the near future.
A significant short-term impact on the housing market includes a fall in home loan applications, despite the revision of OPR
. As people are finding it difficult to commit, there might be a decline in the property business for a short period of time.
The short-term effects on the housing market is a testament to the resilience of the Malaysian economy. The example of the 2002 SARS epidemic is being compared with the current situation as the housing market was able to bounce back immediately after the SARS epidemic.
Any fall seen in the housing prices is expected to recover soon after the pandemic is over, just like the recoveries made in 2006 and 2009.
High Demand for Property in Penang
Compared to other sectors of Malaysia, the housing market has managed to avoid a robust economic shock due to the COVID-19 pandemic. The properties in Penang are still getting high demand, despite economic uncertainty.
According to the President of the International Real Estate Federation, Movement control order (MCO) has been in place for six weeks, and it has not affected the properties to a great extent. This is especially true to the housing market in Penang
, which always rebounds over time.
The government has also announced that it is working on drafting several incentives for the real estate market to minimize any impacts of the coronavirus crisis. Some have called for lowering the property prices to save jobs and control the rising level of unemployment. According to the charts and statistics, the number of property transactions and value remain strong through periods of economic uncertainty.
In the last few years, Malaysia's real estate markets have experienced a reduction in foreign investment. However, a unique scenario is being observed during the pandemic. The interest of foreigners in the property market of Mainland Penang is rising.
People from countries that have been affected more severely than Malaysia are interested in acquiring a property in Malaysia. Healthcare facilities are important to attract foreign investment, and with a highly reliable health care system in place, Malaysia has become a massive attraction for foreigners.
The Bottom Line
All of the evidence presents from the previous epidemics suggest that a rebound in the property market is imminent, as soon as in the third quarter of 2020. Even if property transactions suffer some loss, it will go on only for a short period of time.
Moreover, the current trend of property sales also suggests that both local and international buyers are very much interested in acquiring properties in Malaysia. Hence, if you have plans to buy a property in Penang, you should do it without much hesitation. For more information feel free to get in touch with us