Property market expected to remain in the doldrums

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The primary market is supported by the HOC but the secondary market is not expected to see an upturn, and property auctions will likely increase. FMTNews Property HOC PrimaryMarket SecondaryMarket

The soft property market is not expected to recover in the immediate future.

Global real estate consultancy Savills Malaysia director of research and consultancy Amy Wong told Property Advisor that, based on its observations, the number of properties being put up for auction is expected to increase. “This is due to the stiff competition from new launches, which offer almost zero entry cost to homebuyers. The price point retracted slightly even before the MCO.

“We see some of the newly completed landed properties in new townships being offered for sale by investors at the purchase price or even below. We expect residential units that were purchased for investment purposes to be hit hard during this difficult time. Investors with weak holding power will suffer the most.”

“Depending on location and price point, both landed and non-landed residential projects are reportedly well-received by homebuyers, thanks to the re-introduction of the HOC 2020, which is speeding up the decision to buy a home.”

 

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