Covid-19 a huge disruption to the local property market

Covid-19 a huge disruption to the local property market


The outbreak of the Covid-19 pandemic in the first quarter of 2020 continues to bring much uncertainty and more challenges in the property market.

The partial lockdown which started in the middle of March has contributed to a decline in the number of home seekers and sellers. Property listings have also narrowed.

During the various phases of the movement control order (MCO) up to June 9, processes like completing documentation and progress payments were put on hold as banks scaled down operations during the period.

Further, it can be expected that developers and builders will not be able to complete their projects or developments within the stipulated time frame as supply chains have been interrupted.

While it is still too early to predict the quantum and economic costs brought by Covid-19 on the property market, the transaction volume and value of the property will inevitably fall in the six months to June 30, this year.

The president of the Malaysian Institute of Estate Agents (MIEA) Lim Boon Ping said in an online ASEAN Real Estate Forum recently that "it is likely that house prices in Malaysia will drop for the first time since 1999."