A sluggish real estate market forecast for next year

JOHOR BARU: The real estate market in the country is expected to slow due to the impending recession that is expected to occur next year.

The elected president of the Malaysian Institute of Estate Agents (MIEA), Sr Chia Zi Jin, said the market also depends on the movement of buyers, either to buy properties for investment purposes or to speculate.

“If the housing market is good, speculators will come; if the market is bad, investors will come.

“Investors usually turned their money into properties to ensure their financial strength because properties turned out to be a sound and sound investment,” he said when meeting after the MIEA Johor meeting in Taman Johor Jaya, here, Monday, September 12. .

The real estate market has been quite active since the reopening of borders between Malaysia and Singapore, with several developers making adjustments to their prices.

“The adjustment is not made because the market is bad, but because due to the high price, developers would bring their homes to a more affordable range.

“Johor’s market has been affected during the pandemic, but not all of them as some developers are still making money from their online sales and virtual property tours,” he said.

The properties of Taman Mount Austin, Taman Bukit Indah and Eco Botanic in Iskandar Puteri started to come alive after the border reopened, he said.

“This is also supported by the Singapore government’s policy of allowing workers to work from home, which has prompted more Singaporeans to move to Johor and buy properties here due to lower living expenses,” did he declare.

Meanwhile, former MIEA Johor chairman Liew Toh Sen said the price adjustment would be around 10% to 15% below the current market depending on the location of the properties.

“This will happen in some places like Taman Bukit Indah, Taman Johor Jaya and Taman Ungku Tun Aminah where the real estate market has matured and people are buying properties due to their amenities and proximity to the highway to Singapore.

“But for high-end properties, the buying market will be slow as investors still take the wait-and-see approach,” he said, adding that the pandemic has caused some buyers to be conservative and less enthusiastic than ‘previously.

As for the rental property market, it will continue as usual as people who work in Singapore will look for places to rent, especially those who live outside of Johor, he said.

“Even the developers themselves haven’t started any new projects, and even if they did, it would be mostly on affordable projects because they too are still testing the market,” he added.

Meanwhile, MIEA Johor President, Susan Tan, said the body will hold its annual gala dinner and awards night on October 1 this year at Pekin @ Daiman 18 Restaurant, Taman Johor Jaya.