The COVID-19 pandemic has disrupted economies around the world, and Malaysia is no exception. One of the areas that has been impacted is the real estate market. In this blog post, we will explore the impact of the pandemic on the Malaysian real estate market.
One of the most significant impacts of the pandemic on the real estate market in Malaysia has been the slowdown in property transactions. The Movement Control Order (MCO) that was implemented to contain the spread of the virus resulted in a significant decrease in property sales. Property viewings were also restricted during this period, which further impacted sales. As a result, many developers had to postpone launches of new projects, and some even had to scale back their operations.
Another impact of the pandemic has been the increase in the number of rental disputes. With many tenants facing financial difficulties, they have been unable to pay their rent. This has led to an increase in disputes between landlords and tenants, and many have had to seek legal assistance to resolve these issues.
The pandemic has also had an impact on property prices. According to data from the National Property Information Centre (NAPIC), the overall property market in Malaysia experienced a decline of 5.5% in the second quarter of 2020. This decline was mainly attributed to a decrease in sales of residential properties, which fell by 4.3%. However, the market has since shown signs of recovery, with the first quarter of 2021 recording a growth of 0.6%.
The pandemic has also accelerated the adoption of technology in the real estate industry. With restrictions on physical viewings, many property agents have had to rely on virtual viewings to showcase properties. This has led to an increase in the use of digital marketing and social media to reach potential buyers.
In conclusion, the COVID-19 pandemic has had a significant impact on the Malaysian real estate market. The slowdown in property transactions, the increase in rental disputes, and the decline in property prices have been some of the major impacts. However, the market has shown signs of recovery, and the adoption of technology has provided opportunities for growth. As Malaysia continues to navigate through the pandemic, the real estate industry will continue to adapt to the changing circumstances.Regenerate response