Selangor Journal
Picture shown for illustration purposes only. — Picture via UNSPLASH

Asking prices in property drops in first quarter 2021, recovery expected following vaccinations

KUALA LUMPUR, April 27 — PropertyGuru Malaysia has reported that the overall property asking prices have decreased by 0.84 per cent quarter-on-quarter (q-o-q) and 1.79 per cent year-on-year (y-o-y) to 87.86 index points in the first quarter of 2021, due to buyers’ apprehension.

Given the backdrop of pandemic-related economic uncertainties, it believes that the market sentiment will remain cautious as the property market is expected to see fluctuating price trends in the coming months.

“However, the increased rate of vaccinations is expected to bring more stability and improve consumer sentiment as the year progresses,” said country manager Sheldon Fernandez in a statement following PropertyGuru’s latest Malaysia Property Market Index (MPMI) report.

The property website also reported that a price correction trend in asking prices has been seen in Kuala Lumpur (0.66 per cent), Penang (1.36 per cent), and Johor (0.29 per cent), presenting strong investment opportunities.

In Q1 2021, Kuala Lumpur’s y-o-y asking price dropped by five per cent, the highest recorded dip since PropertyGuru launched its market index in 2016.

“This more than two-year downtrend is now being accelerated by the pandemic and could be seen as a price correction trend that began following a challenging economic period and highly-priced mismatched property offerings,” it said.

While the overall asking prices in Malaysia have dropped both on a q-o-q and y-o-y basis, in contrast, the MPMI found that the overall supply listings tracked on PropertyGuru saw a growth of 2.71 per cent q-o-q and 15.85 per cent y-o-y in Q1 2021, indicating an upward trend.

During the quarter, Penang recorded the highest spike in the yearly supply volume, increasing by 34.17 per cent y-o-y and 1.19 per cent q-o-q — a positive growth for the third consecutive quarter.

“The robust turnaround of supply volume in key regions in Malaysia is likely due to the government’s decision to allow the construction and property development industry, along with other vital sectors, to continue operating during recent periods of heightened movement restrictions.

“This indicates that developers are confident that recovery is on the horizon,” it added.

— Bernama

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