iProperty.com: Impact of MCO reimposition less severe on property sector

KUALA LUMPUR, May 7 — The impact of the reimposition of the movement control order (MCO) will be less severe as almost all economic sectors, including the property sector, are allowed to operate, said iProperty.com Malaysia Sdn Bhd.

General manager Shylendra Nathan said in addition, Bank Negara Malaysia’s announcement on maintaining the overnight policy rate (OPR) at 1.75 per cent is timely as every ringgit will matter for Malaysians in household spending and securing essential needs.

“The few hundred ringgit saved on home loan monthly instalments will mean more cash on hand to spend on essential needs such as food, medicine, and child care.

“For landlords, the low OPR will assist them to save money especially when movements are restricted which resulted in the difficulty of finding tenants,” he said in a statement.

Furthermore, the lower financing cost advantage will help to offset the drop in rental income, while tenants are still in a better position to negotiate rental prices and this has been reflected in slight drop in rental yields.

Shylendra said interest in property is encouraging despite the Covid-19 pandemic, with more property seekers shifting to digital platforms such asiProperty.com.my to find their dream homes.

“We believe this trend will continue as more Malaysians turn to the convenience and safety of digital platforms for their property journey. Today, digital platforms are crucial in helping property seekers in making informed decisions, be it buying or renting,” he said. — Bernama

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