2020 has come to a close and despite it being an unprecedented 365 days of challenges and uncertainty due to the Covid-19 pandemic, the past year still managed to spring some surprises especially in real estate. Although the health crisis threw a spanner in the works for investors, buyers and developers, interest in the market was fortunately still healthy.
In terms of property purchases the industry saw a decline in the first half of 2020, which is relative to the performance of the Malaysian economy. According to the National Property Information Centre (NAPIC), in the first half of 2020, the property sector recorded over 115,000 transactions, worth approximately RM47 billion.
In Q3, the volume of transactions experienced an uptick, with a total of over 89,000 units, which marked a slight increase compared to the same time frame in 2019. In terms of searches, Mudah.my also experienced healthy traffic within the property sphere especially from Q2 to Q4 of 2020.
Preferences For Sale Over Rent
In terms of searches, most users looked for properties to buy as opposed to rent on Mudah.my. A lot of those searches were also centred on condominiums over houses. A total of 6.4 million users went looking for new launches, which is understandable due to incentives such as the Home Ownership Campaign (HOC) and stamp duty exemptions. Despite the economic downturn, developers also continued to launch their new projects to entice homeowners.
Projects such as Riana Dutamas Savvy Residence, which is centrally located in KL in Kenny Hills and priced just above RM400,000, will surely tick the right boxes for buyers looking for a brand new home in the capital city at a price that won’t break the bank. Alternatively, something like MKH Nexus Tower C, priced at just above RM300,000, in Kajang also delivers a value proposition for buyers especially in this well-connected township.
Mid-To-High Properties Still Rule The Roost
In an encouraging sign, data has also revealed that interest in properties above RM300,000 surpassed interest in properties priced below that figure. Searches for properties below RM300k numbered in the range of 12.6 million compared to 170.9 million for real estate priced RM300,000 and above.
Selangor, expectedly, retained its position as the most searched state amongst visitors. According to a report in Free Malaysia Today, the state was the only major state to register an increase in housing demand in the first half of 2020. The report also stated that the state delivered a 3.5 % year-on-year increase in the sub-sale category within that time frame.
The interest in Selangor is undoubtedly fueled by the growing appeal of Shah Alam amongst home buyers. The capital city of Selangor is not only highly accessible but it also boasts a wide variety of developments and townships such as Elmina that appeal to a wide spectrum of buyers as well as budgets. With good rental yields and good appreciative value, Shah Alam continues to be one of the country’s leading hotspots for real estate.
Kota Kinabalu on the other hand emerged as the most searched area outside of central. Despite the fact that the number of transacted residential properties in the Sabah capital were in decline by as much as 30% according to NAPIC, Kota Kinabalu still registered strong interest amongst visitors. This is largely due to some residential properties in the secondary market dropping by as much as 20-30%,which is enticing for investors looking to score a good bargain.
As we wave goodbye to 2020, we also eagerly look forward to what the coming year will bring. There is no doubt that the continued interest in real estate will continue to maintain and grow in 2021, providing home buyers with numerous investment opportunities in the coming year.