KUALA LUMPUR (Aug 27): The loan moratorium introduced under the National People’s Well-Being and Economic Recovery Package (PEMULIH), which is effective from July to December 2021 -- has helped to ease the financial pressure on property owners.
The Malaysian Institute of Estate Agents (MIEA) president Chan Ai Cheng said despite being a temporary measure, the moratorium has certainly assisted in stabilising the secondary property market.
She added that the MIEA plans to submit a proposal with regards to a roadmap on the real estate sector’s recovery to the Finance Ministry.
“We have established a Real Estate Recovery Task Force to look into this,” she said at the virtual presentation of the ‘Real Estate Professionals Sentiment Survey on Malaysia’s Property Market Performance - Overview on the First Half of 2021 (1H2021) and Outlook for 2H2021’ today.
Meanwhile, Chan noted that the current low-interest rate environment is seen to be the main factor that influences the performance of the residential property market.
Although the Home Ownership Campaign (HOC) is perceived to be an important strategy to bolster the residential property market’s performance, the survey revealed that it only ranked as the fourth most important factor.
“This can be attributed to the fact that the HOC is limited to the primary property market and does not benefit the entire residential property market,” she said.
Additionally, recovery from the COVID-19 pandemic is believed to be an essential factor that will influence the commercial and industrial property market’s performance in 2H2021.
“The pandemic continues to affect micro, small and medium enterprises, and when businesses suffer, commercial properties suffer too,” she said.
Chan added that the survey respondents are not very optimistic about the secondary property market‘s recovery in 2H2021; many believing that it would take some time for the market to recover.
MIEA is the national body representing real estate practitioners in Malaysia.
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