Mixed Views on Property Sector

The Malaysian property sector is expected to remain rather insipid for the remainder of 2020, as the effect of the global pandemic outbreak.

PPC International managing director Datuk Siders Sittampalam feels that the property market in the second half year of 2020 won’t be very much different with how was it in the first six months of 2020.

MIDF Research in a report said it expected new property sales to improve marginally in the second half year due to incentives introduced in the Short-Term Economic Recovery Plan (Penjana).  

Siders mentioned the introduced in Penjana to boost the property sector as expect it only partially cushion the negative impact of cautions buyer sentiment. However, the property sector would likely only experience a recovery from next year.

According to statistics released by Bank Negara, total applied loan for purchase of property improved sequentially by 52.9% month-on-month to RM 13.1bil in May 2020 after plunging by 64.8% month-on-month in April.

The research house said total loan applications recorded a steep decline in April due to disruptions to business activity following the commencement of movement control order.

Nevertheless, total applied loan in May was lower by 61.8% year-on-year while cumulative total applied loan in the first five months of 2020 was lower by 33.6% year-on-year, indicating buying interest was subdued, Looking ahead, expect buying interest to recover in the second half of 2020 due to incentive introduced under Penjana.


Source: Thestar