BEING conscious about the target market and location is important for property developers to thrive during the COVID-19 ravaged economy.
Speaking to FocusM, PropertyGuru Malaysia said buyers’ taste in housing have changed due to the pandemic.
“According to our survey, home seekers are now prioritising points such as ventilation and natural lighting (63%), low density projects (61%), reputation and financial stability of the developer (61%), as well as high speed internet accessibility and internet of things (IOT) features (60%),” it said.
Under Budget 2021, the Government has announced a full stamp duty exemption for first time house buyers, for homes worth RM500,000 and below.
To qualify for the exemption, buyers must have signed the sales & purchase agreement between January 2021 and December 2025.
The move was aimed at stimulating the property market and encourage first-time house buyers to purchase homes despite the pandemic challenges.
Touching on the stamp duty exemption, PropertyGuru said one of the challenges facing the affordable housing market was the mismatch between the perspective of the Government and developers.
Eventually, it became one of the reasons why Malaysia suffers from a property overhang.
Elaborating, PropertyGuru said the Housing Board of Malaysia (HBA) classifies affordable properties as those costing between RM150,000 and RM300,000, with at least two bedrooms and a built up area of at least 800sq ft.
“But in the eyes of developers, affordable properties are those that cost up to RM500,000 for first time home buyers and up to RM1 mil for second time house buyers and upgraders.
“Therefore, we see few properties very sparsely situated out of the urban areas costing RM150,000 to RM300,000, while a majority of new launches are in the range of RM500,000,” it said.
Buyers’ mindset have changed due to pandemic
Leading the property overhang problem was the unsold condominium and apartments units.
“And that is why developers must utilise comprehensive data analysis, which includes obtaining up-to-date data on transaction, demographic, aerial imagery, rental and more.
“Data driven insights make all the difference in promoting greater transparency within the property ecosystem, which would ultimately resolve the supply and demand imbalance in the market,” it said.
Post COVID-19, PropertyGuru said developers need to fine tune their housing projects to meet buyers’ demands.
“In the post-pandemic world post, needs and wants of home seekers have drastically changed. Therefore, agility to adapt is key in ensuring survivability and success for all,” it said.
Last year, former Finance Minister Lim Guan Eng lowered the foreign ownership threshold for condominiums and apartments in the city area to RM600,000 from RM1 mil.
He was the move was aimed at reducing the supply overhang of such units, which stood at RM8.3 bil in the first quarter of last year.
“It does not include new projects that are yet to be launched. This measure is expected to benefit the property sector without affecting the interest of Malaysians,” the Bagan MP was reported saying then. – Nov 29, 2020.
