Even as they were coming to grips with the possible impacts of the Coronavirus outbreak, Malaysian agents forecast that nationwide prices would increase in 2020, a new survey from Juwai IQI has found.

Conducted between February 7 and March 18, just as the pandemic was beginning to gain traction the Malaysia, 342 agents from around the country were asked about emerging trends within the sector.

According to Juwai IQI, the respondents forecast that nationwide prices would increase by 1.1 per cent in 2020, with Johor having the highest 2020 price growth forecast at 2.1 per cent.

Source: Juwai IQI 

At the other end of the scale, Penang had the lowest growth forecast, with prices expected to fall by 3.1 per cent in 2020.

The results demonstrated even more confidence about the market's prospects for the following year, with most feeling the market would return to growth after the Coronavirus outbreak ends.

Agents forecast that nationwide prices will increase by 8.6 per cent through the end of 2021 with 10.6 per cent growth expected in Perak.

Source: Juwai IQI

Penang again has the weakest forecast, with 4.4 per cent. price growth expected through the end of 2021.

The industry reports that first-time buyers made 30 per cent of nationwide new home sales transactions in Q4 2019 — significantly more than any other buyer group.

The sub-sale or secondary home market in Q4 2019 was led by first-time local buyers and local upgrade buyers.

The two groups each accounted for 27 per cent of sub-sale purchases in the period.

Source: Juwai IQI

When it comes to predictions of transaction growth during the remainder of 2020, 61 per cent of agents expect first-time local buyers to conduct more transactions in 2020 than in 2019, and 55 per cent of agents expect foreign buyers to conduct more transactions in 2020 than in 2019.

With the impact of the Coronavirus epidemic on the market, Juwai IQI believes Malaysia will see greater use of online tools to facilitate the marketing, research, and purchasing of real estate.

"Some of these tools, such as virtual reality, 3D rendering, and livestreaming, are already available but will be used much more widely than in the past," Juwai IQI says.

Click here to download a copy of the report.

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