THE COVID-induced new normal will be a boon to mixed property development, especially projects that combine all three components – hotel, commercial and residential – within a single address, said several property experts.
The new normal dictates the types of preferred properties home buyers may want to live in that takes into account the extra care taken to keep safe when doing business, the need to avoid travelling too far, the demand for stable internet connectivity for working from home, a sense of security and shopping convenience, they said in a statement.
The Health Ministry’s standard operating procedure (SOP) to avert coronavirus infection has generally dampened market sentiment but in this case it did the reverse for SOP-conscious house buyers.
Once a neglected property segment, mixed development is trending and getting the attention it deserves as a good peg for property investment and a perfect fit is when the property is in a prime location and freehold.
“Mixed development fits the requirement of the new normal all have to live with, where the amenities you find in such properties allow you to meet your clients in a clean sanitised hotel setting, enjoy fast internet connectivity and pick up your groceries in a jiffy,” said DSGT Consultancy Sdn Bhd property investment principal Datuk Seri Gavin Tee.
Domestic tourism is expected to see a boom post-COVID-19 when people are eager to travel, and there will be an uptake in demand for hotel rooms, he added.
Given these positive factors, mixed developments with all three components will command a premium and it is wise to invest in such properties even now in the midst of the COVID-19 pandemic.
Meanwhile, online property portal kopiandproperty.com editor Charles Tan opined that there are always opportunities to explore when all seems dire especially during a crisis such as the pandemic.
“Opportunity exists because many are pulling back. During good times, many are jumping in and are queuing up during new launches and many would decide on the spot but when the whole world knows about it, the opportunity ceases to exist,” he explained.
Tan further pointed out that any investment in a mature and affluent neighbourhood in locations like Bangsar would continue to be favoured even after COVID-19 is under control.
“It won’t lose its lustre as you can’t be wrong choosing property in such a high-end matured neighbourhood,” he added.
Property investment speaker Chris Tan concurred, adding that property especially in vibrant Bangsar is sought-after and buying now makes sense as the pre-COVID-19 price was never lower than RM1,000 per sq ft.
“Bangsar is a mature location and when a project is completed in a few years’ time, the post-COVID prices will rise driven by inflation, and the property there may double and hit RM2,000 per sq ft which is still affordable,” he said.
Tan, the principal owner of law firm Chur Associates, is an avid property investment speaker in the local property talk circuit.
“There is no need to justify the attractions of any new projects in Bangsar which is a first-choice destination. The idea is to buy now as you won’t get it at the current price in a location filled with expensive landed properties,” he said. – Aug 24, 2021.
Photo credit: PropertyGuru
