Experts urge developers to switch focus to landed properties

KUALA LUMPUR (April 24): Malaysian developers should switch their focus to landed properties in respect of the peoples’ wishes to have a better quality of life, said experts.

Impetus Alliance chief executive officer and managing director Datuk Seri Michael Yam said affordable landed properties would be a better investment choice for Malaysians.

“The Covid-19 pandemic and the Movement Control Order (MCO) have caused more people to work from home or to stay at home, hence, they are looking to have better space.

“Developers should take note of the fact that people have realised that they want to have more public space with high-speed Wi-Fi or sound-proof room, for example,” he said at the Malaysian Institute of Estate Agents’s (MIEA) Multi-Sector Market Outlook Forum, yesterday.

He said the pandemic and the MCO undoubtedly had a significant impact on buying sentiment, which was already decreasing prior to these events.

Meanwhile, as to whether house prices will drop by as much as 30%, Hartamas Real Estate Group founder and group managing director Eric Lim disagreed.

He said the industry would be focusing on stabilising the whole market for the first few months after the MCO has been lifted.

“I disagree that house prices will drop by 30% because the government’s initiative to give moratorium on loan payments for six months will give some kind of stability.

“Sure, it will be slow at first, but it should pick up thereafter,” he said.

Previously, Bank Negara Malaysia (BNM) in its Financial Stability Review (Second Half 2019) report said Malaysian house prices remain seriously unaffordable relative to income, due to a pronounced and prolonged mismatch between demand and supply of residential properties.

Nevertheless, risks of a sharp correction in house prices will continue to be mitigated by firm demand for housing, particularly for properties priced below RM500,000, it said.

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