THE real estate sector is active under the current-movement control order (MCO) as it is better prepared after adapting during the first MCO last year when everything came to a halt, said agents.

Agents and intermediary companies are allowed to operate under MCO 2.0 and since law firms and land offices are also open unlike during the first MCO, “there is business to be made”, said Malaysia Institute of Estate Agents (MIEA) president Lim Boon Ping.

Brokers are focusing on areas where tours and property inspections are still allowed since different levels of movement restrictions are being applied in different states.

The management bodies of some high-rise condominiums allow site inspections by buyers and agents, while others don’t.

“We just follow their rules and work with the ones that do allow visits. There are still people looking to view properties even if it’s not as many as before,” he said.

While the Ministry of International Trade and Industry has granted approval to property agents and companies to operate during the MCO, no guidelines were provided on whether property inspections and tours were allowed.

“We just proceed on the basis that it is allowed with strict compliance to Covid-19 standard operating procedure (SOP).

“Agents follow the principle of ‘the fewer people there are, the better’ when conducting property inspections with potential buyers.”

MIEA has told its members to allow only a few people on a tour, to observe physical distancing and to wear masks.

“It is difficult for the government to issue separate SOP for each and every sector. So, we look at what is being done overseas and make our own SOP,” he said.

MIEA Sabah secretary Belinda Chong told The Malaysian Insight condo management bodies in the state are mostly strict and have their own rules for property viewings.

“Only one or two individuals, at the most, are allowed to view the property, excluding the agent. All the SOP must be followed, and still the viewing is subject to the owner’s consent,” she said.

In Perak, state MIEA chairman Lee Jun Liang said the management bodies of stratified properties are cautions and have barred viewings.

“There’s a ‘no visitors’ policy at most stratified properties here. Due to this, agents are focusing on non-stratified properties.”

However, Lee said the market portion of landed properties is not high, comprising between 10% and 20% of the market share.

Most agents have prepared digital materials to facilitate their work, and also use social media to advertise, Lim said, adding that these were measures learnt after the first MCO.

“For example, if you can’t view the property you’re interested in, the agent can still give you a digital presentation. Agents are more prepared this time compared to last year,” he said.

MCO impact

MIEA president Lim said it is hard to tell what sort of impact MCO 2.0 has on the real estate sector because of a lack of solid data.

However, unlike the first MCO, the sector is not at a complete standstill.

“There was almost zero income during last year’s MCO. Law firms were closed and so was the land office. You can only accept deposit payments and cannot meet to sign sales and purchase agreements. This time, there are no issues with signing the agreement, only on the inspection tours,” he said.

Lim said the sector recovered to pre-pandemic levels in September and it is expected to continue its uptrend this year, even if recovery slows down due to current restrictions.

“It was only back to pre-pandemic levels, we cannot say it’s better than before. Plus, the market has been slow in recent years.”

Lim also said measures, such as stamp-duty exemptions, are helping to boost the property sector, elsewise developers would be facing severe disruptions.

The government has also extended the home ownership campaign to year-end.

Lee, of MIEA Perak, said agents in the state have been receiving 30%-40% less enquiries since the second MCO was enforced in the state on January 22.

In Sabah, Chong said feedback from Kota Kinabalu players indicates that there will be a reduction in sales of about 20%-30% for January.

“Other than the drop in prices and the lack of foot traffic, the leasing market is still very active.

“We are also currently seeing a shift in the market from high-end properties, such as Peak Vista and Jesselton Residences, to more affordable housing due to the lack of expats and low demand. The market for low- to medium-end properties is still not bad,” she said.

Chong said, however, the commercial leasing market is the most heavily impacted section of the property market, with a reduction of at least 20%, due to lower economic activity.

On the industrial property side, she said, demand remains high due to the current prevalence of express trade services.

The ones likely to delay their purchase plans are those buying for investment, said Lim, as they will take a longer time to consider.

Buyers looking to purchase a home are unlikely to suspend their plans. The rental market, too, remains active since the first MCO.

“People still need a place to stay, if their incomes have been affected and they can’t buy their own place for now, they’ll find a place to rent.

“Although it is not a large section, the rental market is fundamentally very active, as housing is an essential need,” Lim said.

The sector is also receiving new agents, as widespread layoffs take place in other sectors such as tourism and aviation.

“This is not an issue. The market is huge and everyone can make some money to put food on the table.” – January 29, 2021.