Hurdles also create opportunities for real estate industry stakeholders
The recent Covid-19 pandemic posed a great challenge for many industries, including the real estate industry in Malaysia. But it is not the only challenge. The subsequent reverberating effects from this root cause have triggered off other issues. But not everything is all doom and gloom.
Thankfully, 2022 has performed relatively much better than the previous year, said The Roof Realty Sdn Bhd real estate agent Ivan Chong.
“The Roof Realty, being the largest sub-sale agency in the market, has seen rapid growth in the industry this year compared to the previous year. The mass market has been actively sorting for properties after a long pandemic.
“Many foreigners are flocking into Malaysia for business purposes, hence increasing property ownership by them. It is due to our multi-cultural diversity which attracts FDI (foreign direct investment) influx into the country. In addition, support and incentives given by the government also increased property ownership among locals. All these have contributed to a better real estate market in 2022,” he said.
No doubt that the unpredictable market environments of pre, current and post covid-19 pose new opportunities. “As tenants and buyers have to adjust their business strategy to adapt and survive, we too will need to assist landlords in adjusting our marketing efforts in order to fit into what the market need, that includes the methods we employ to attract interest, to conduct property inspections, and complete the documentation needed to conclude an offer and acceptance.
“For example, physical viewing to inspect the property has always been the gold standard pre-pandemic. During the covid-19, inspections using video calls were employed although many struggled to decide on such methods. Some accepted this as a solution, hence making it easier for them to accept that agents can witness the signing of a confirmation of sale document via a video call. The legality of this method can always be challenged, however as long as both parties honour what has been agreed and proceed to the next step and execute the deal, it is done,” said Tech Realtors Properties team leaders and senior negotiator Kevin Kho.
“The upcoming challenges for the real estate sector include the higher borrowing cost with the increasing Overnight Policy Rate (OPR), which may continue to increase to curb inflation. It may lead to lower buying sentiment among property buyers, and lower disposable income may slow decision-making among the buyers. However, I am confident that developers and estate agencies will come out with different packages and stimulating factors to overcome it,” said WEREG Properties chief executive officer Ethan Leong.
Another challenge, particularly for real estate agencies in Malaysia, would have been managing human resources. I can foresee a drop in professionalism due to pointless recruitment policies and lower entry of the agent or negotiator. It could jeopardise the professional quality of the agents or negotiators in the market, and many agencies need to look into that and not just focus on profit-making only. However, they could have done this better with training facilities and human resources management.
Overall, Chester Properties director Patrick Yong believes that the economy is transforming and the real estate market is recovering.
“Personally, I believe that real estate is a good choice of investment vehicle that most Malaysians prefer. It is a medium to long-term investment vehicle that gives stable investment returns in terms of capital appreciation and rental income with manageable risks. The real estate market will be the investor’s choice for their hard-earned money to leverage towards their long-term financial goal,” he said.
Nevertheless, all four strongly believe the real estate market in 2023 will see greater growth as the country's borders have been reopened and the economy is in full gear.