2020 was a tough year, many were impacted with financial stress and many other unfortunate events because of the pandemic, and when everything seems to be under control, many more obstacles come up and messes up the plans we have written down for the year.
Many property experts have suggested that 2021 will be similar to 2020 as we can’t be ensured with a smooth year, as of now, it’s been 6 months since we got into 2021, we still can’t see anything moving in the market.
The government mentioned that Malaysians are given the opportunity to purchase properties with HOC2020 that’s supposed to end in May 2021, but the transaction rates were slow and not many grabbed on the opportunity to grab their property.
HOC2019 was introduced to help curb the property overhang issue and it did marvelously with more property transactions than compared to the previous years of 2016 – 2018. If there was not pandemic, the property experts perceive that HOC2020 would have been better than HOC2019.
2020 was quite a surprise when there were still property transactions done, experts said that it could be due to the moratorium that was announced by the government for Malaysians to be able to stop paying their mortgage and hire purchase loans for 6 months.
Hence, resulting into more property being transacted during that time, and yes, when the market is at an all time low, you should consider buying a property, as when the market is high again, you are able to gain more in return.
With this pandemic seeing no end in the near future, property developers are still launching new projects and constantly building new buildings while their other projects has the occupancy rate of 60 %– 70%. At this current rate, there are more supply than demand in the market but developers can’t stop building.
While the borders remain closed for foreigners, we can’t expect foreigners to be able to purchase the properties in our country for a while, as they are currently facing difficulties in their own country.
2021 could be the year for auctioned housing as there will be people who are unable to pay their mortgage loan, there will be more properties in the market that will contribute to the overhang issue.
Hopefully, this pandemic ends soon and Malaysia can be on the road to recovery, while developers can plan strategic plans to curb the overhang issue.