With Vaccinated Travel Lanes now opening across the world and various economy sectors now stirring back to life, life as we know it is getting back to normal. For the past two years, COVID-19 has upended a lot of lives and livelihoods, effecting industries across the board. Real estate for one has experienced a slump in recent years but now with a semblance of normalcy, the property segment is also receiving significant interest again.
The local property market is already showing stronger signs of recovery in 2022. According to Rahim & Co International’s Property Market Review 2021/2022, the first three quarters of 2021 saw over 200,000 property transactions amounting to RM98 billion recorded. It marked a year-on-year increase of over 20%.
This positive trajectory looks to be continuing this year with consumer segment now leaning towards buying properties again, especially as real estate prices are still relatively low compared to pre-pandemic levels. Also helping to fuel interest is the current incentives being offered by the government.
First Home Buyers will be able to enjoy stamp duty exemptions for residentials priced below RM500,000. Qualified buyers will also be able to secure up to 110% financing for residential properties below half a million via Skim Rumah Pertamaku.
Low bank interest rates are also fuelling interests in the segment as is the government’s decision to exempt the Real Estate Property Gains Tax (RPGT) for individual owners of properties owned for more than five years. If you’re in the latter category, perhaps 2022 will prove to be the most conducive time to liquidate your real estate asset.
Favourable Market Conditions
People are searching and showing interest in real estate once more and the market is more than happy to satisfy. According to Mudah Property data, there has been a steady rise of property listings on the platform since late last year.
In December 2021, a total 84,000 new property ads were listed, with January 2022 and February 2022 recording 93,000 and 90,000 for sale ads. Johor Bahru led the way with 30,000 adverts within the time frame with Shah Alam recording 21,000 and Klang and Kajang with 17,000 apiece.
For owners who are looking to sell their property, 2022 should be ideal as it presents a number of positive attributes. With interest fuelled by lower interest rates and a reviving economy, there is potential for their property to be disposed of at a faster race especially with an eager and interested market.
With the nation transitioning towards the endemic phase, opportunities for investment in real estate are viewed as more viable again especially as the short term lease/rental segment expected to rise once more. Also, with prices expected to rise for brand new properties, due to the disruption to the global supply chain, there is a better chance for prospective buyers to purchase a property now at a more favourable price versus later on.
Additionally, with benefits such as the RPGT exemption, owners can also take advantage of the current incentives to reinvest in the segment. The potential profits gained can be channelled towards additional real estate investment for the future, or as an incentive to upgrade to a larger unit in a more enticing neighbourhood in accordance with their lifestyle/investment needs.
But First, Study The Market
Before you rush out and engage an agent and list your property, first do your homework. The current state of overhang properties in the market are still considerably high. Also with the end of the moratorium in January, there could also be more properties arriving on the sub sale market, which could bring down overall prices.
Due to the oversupply, it is still a buyers’ market at the moment. As such it is important to pay attention to the market value of surrounding properties so that you don’t risk listing your property being priced well out of range.
A practical way to check is to search the surrounding area of your property to gauge the market prices there and also do a bank/property valuation. A quick search on Mudah.my will also allow you to pull up the required information with just a few clicks. If you plan on listing the property, the platform presents a good way to reach your intended audience along with useful tools and information, including how to list your property in the most effective way.
That said, some areas tend to attract more interest and with that better asking prices compared to most. Within the central region, areas such as Jalan Ampang and Kenny Hills are showing steady YoY increase for median asking prices. USJ Heights in Subang Jaya and Timor Laut in Penang are also proving highly popular amongst buyers. If you have properties within these areas, it could be the right time to place it on the market for optimal gains.