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How to sell my property in Malaysia fast in 2020?
There’s no question that the property market in Malaysia has been hit pretty bad by the outbreak of the Covid19 pandemic.
Real estate analyst Sheldon Fernandez says in this interview with the Malay Mail, “Based on previous crisis years, the upper limit of this decline would be about 10 per cent, as overall house price growth dropped by 9.4 per cent during the 1998 Asian financial crisis and its accompanying Nipah virus outbreak.”
Ben Ooi of Knight Frank Malaysia says in an interview with the New Strait Times, most Malaysian retail establishments located in tourist hotspots have shutdown. The strain on the cashflow is terrible, with no money coming in, and the expenses being a constant. No surprise then that many have resorted to lay off their staff.
Mr. Ooi says, “With the rakyat staying at home during the current extended MCO, retail and entertainment outlets with the exception of those providing essential goods or services, have no sales as they are not allowed to operate."
James Buckley of Knight Frank Malaysia concurs. He says the effect on the property market in Malaysia has been particularly severe.
“With the reduced leasing and investment activity, commercial office and retail rents will be further under-pressure. In the short term, investment transactions will be limited as viewings are not happening," Mr. Buckley said.
What makes it worse is the complete mismatch in expectations from sellers and buyers. Buyers expect massive price cuts, while sellers would rather not sell than reduce prices.
Mr. Buckley explains, "Genuine, motivated sellers will consider reducing their price, pushing yields higher. Domestic investors should also consider the benefit of investing some of their capital in overseas real estate markets which will provide diversification in real estate returns and currency."
But there is still hope…
There is always hope – without that nothing would move in this world. Malaysia, in fact, battled a pandemic just as terrible as the Coronavirus. Remember the Nipah virus that hit South-East Asia in the late 1990s?
Malaysia was very successful in dealing with the Nipah virus and came out of it successfully. Besides, the financial system in the country is now far better equipped to deal with such viral outbreaks.
The government response has been swift and effective. The Bank Negara Malaysia has cut down Overnight Policy Rates (OPR) to 2.50% and the Statutory Reserve Requirement Ratio (SRR) to 2.00%. The Malaysian Central Bank has further announced a 6-month loan repayment moratorium on all housing loans, which should help boost sentiments in the real estate market.
So, how to sell property in Malaysia fast in 2020?
Who is still buying properties in Malaysia right now, despite the Covid19 pandemic and the uncertainty about the future?
Usually, wealthy Chinese and other Asians are among the biggest buyers of properties in Malaysia and that is not going to change anytime soon. The Russians have also recently come onto the market.
Also, there are many Malaysians staying abroad, in Europe, Australia, United States and Canada who look to buy a second home in their country of origin. This could be because of family, love for their home country and a sense of pride and hope in the future of Malaysia.
Even as Chinese buyers are getting shunned across Europe, United States and Australia, Malaysia continues to welcome them with open arms. Which is welcome news for you if you’re eager to sell your house in Malaysia fast in 2020.
There are many wealthy individuals from China - business owners, CEOs, business executives, bureaucrats – who are buying homes and apartments in Malaysia, especially in Kuala Lumpur.
Which is why any real estate in the Malaysia will still fetch a premium. Just one thing though – you cannot sell your overseas property in Malaysia yourself or with the help of a local real estate agency.
You would do better to hire the services of an overseas property expert, who would have extensive contacts/professional relationships with cash rich buyers from China, Middle East and the rest of Asia. You can benefit from their extensive international network. Contact us to know more on how to sell your house or apartment in the Malaysia fast in 2020.