SOME are tightening their belts due to Covid-19’s impact on the economy, while others have no problems investing in a property.

Industry figures said it is indeed the right time to invest if someone has the financing.

Mah Sing Group chief operating officer Benjamin Ong said the group recorded RM350 million in sales during the movement-control order (MCO), thanks to the various tax incentives, including the exemption of stamp duty and real property gains tax, under the Penjana package.

Demand for mid-range properties also grew at that time, he said, especially those priced between RM500,000 and RM600,000.

Although the coronavirus pandemic has affected the real estate market somewhat, housing prices have not significantly changed.

The government’s reintroduction of the home ownership campaign has also helped with sales.

The campaign, which offers up to RM1 million stamp-duty exemption on name transfer letters for properties priced between RM300,000 and RM2.5 million, and 100% stamp duty exemption for the financing agreement, has been extended until May 31 next year.

Ong said Mah Sing conducted project launches online during the MCO and recorded good sales.

In July, as movement restrictions eased, the group’s 378 units in a high-rise condominium in Wangsa Melawati, M Adora’s Tower A, recorded a take up rate of 90% during its launch, Ong said.

Mah Sing sold new properties worth RM1.5 billion last year.

“The housing market slowed down in 2017 and 2018, but it slowly improved in 2019,” Ong said.

Malaysian Institute of Estate Agents president Lim Boon Ping said incentives in the Penjana package have helped the market.

He said the pandemic’s impact is different from the 1997 Asian financial crisis, whereby the mortgage interest was in double digits.

Banks currently have the space to allow borrowers to postpone repayment of loans and the banking sector is much stronger than it was during the financial crisis, he added.

“The thinking is that due to the pandemic and the MCO, the domestic real estate market would be affected by job lay-offs and salary cuts.

“However, banks have reduced the interest rate and the government has also announced an extension of the loan repayment moratorium on a targeted basis,” he said.

As for the rental markets, Lim considers it on the rebound.

“The pandemic is affecting mainly people in the tourism, aviation and retail industries.

“In principle, people do not buy houses, but will still rent housing. In view of this, leasing was quite active during this period.”

There also hasn’t been any drastic increase in cases of homeowners selling their houses.

“Although the property market was sluggish during the restriction period, it won’t collapse entirely,” said Lim.

Anecdotally, he said that there have been plenty of calls made to real estate agents during ongoing recovery MCO asking for property viewing.

Austin Heights managing director Steve Chong said many buyers are taking advantage of preferential discounts granted by developers and stamp-duty exemptions.

“Food, clothing, housing and transportation are always important. Even if the economy is in a recession, those who can afford to buy a house will still choose to do so during this period.

“According to the current market trend, real estate prices ranging from RM500,000 to RM700,000 are in demand. Developers will also be moving towards such projects.”

Chong said the pandemic has changed the marketing model of developers.

This includes offering smaller size, fully furnished properties at prices more in line with the market.

However, it doesn’t mean rosy profits for developers, said Chong, who is also president of the Johor branch of the Real Estate Development Association of Malaysia (Rehda).

“It is hard to say that developers can make good profits at the moment. The money made goes back into operations.” – August 7, 2020.