KUALA LUMPUR, June 9 — The economic downturn in 2020 has affected both new development and subsale residential property sales in the Klang Valley, seeing a year-on-year (y-o-y) drop of 64.9 per cent and 41.1 per cent respectively, according to MyProperty Data.
In a statement today, managing director Thor Joe Hock said the steeper decline in new development property transactions could be due to delays in new project launches as construction progress was affected during the first movement control order.
He said in 2020, the property market in the Klang Valley recorded the lowest new development purchase in the last five years, with a 90.6 per cent and 38 per cent y-o-y decrease in the number of transactions made by first-time home buyers and investors.
On the other hand, he said the total number of transactions in 2020 for subsale properties was the lowest for first-time home buyers (79.4 per cent y-o-y decrease) but the highest for investors (9.6 per cent y-o-y increase) in the same five-year period.
“Covid-19 has undoubtedly impacted both the real estate market and property purchase trends in Malaysia last year.
“For aspiring first-time home buyers who have the capital but are indecisive in taking the leap into home ownership, they will require more enticement from developers and the government alike,” he said.
He said to help spur the industry and increase home ownership, there must be greater incentives offered to first-time home buyers, be it attractive rebates from developers or assistance from the government.
“We are pleased to hear of the government’s recent decision to extend the residential home stamp duty exemption scheme under the Home Ownership Campaign until this year-end as we believe this will not only help to reduce the burden for home buyers, but also to help support the sector’s recovery.
“With properties often considered as a hedge against inflation, these assets may offer a long-term boon with the eventual market recovery and stabilisation,” he added.
A part of PropertyGuru Group, MyProperty Data provides data, analytics and solutions focused on the Malaysian real estate market. — Bernama