The best time to invest in property is now when the cycle is ending instead of when the cycle is beginning, says property investment consultant, Dato Sri Gavin Tee in a recent virtual property forum. Citing the many changes caused by the pandemic, Tee said prices of many types of property have fallen now to their lowest level, as such “now is the best time to invest”.
This is especially so as prices are expected to rise within the next two years when recovery takes place, he predicted. “Due to rising prices of materials and labour, prices will trend higher.”
The next five years will also witness the revival of the secondary market because prices will be lower than new developments. Demand will also shift to suburban areas where rentals might even be higher than in city centres.
“Hotspots will shift too – university towns have lost its lustre due to the closure of educational institutions during the pandemic while ecotourism and wellness centres as well as green or nature environments especially those accompanied by food cultivation will see a strong pickup in demand. ASEAN has the best advantage in this regard as this region has all the best wellness and green destinations.”
Tee also cited other factors that would cause prices to trend higher in the coming months – they include lower interest rates, financial markets moving funds to the property market, and the short supply of good land.
[ihc-hide-content ihc_mb_type=”show” ihc_mb_who=”1,2,3,4,5,9″ ihc_mb_template=”1″]
Governments would also emphasise on different types of developments while more established and more populated areas are preferable for new developments due to buyers’ preference for destinations closer to their families.
“Ultimately, investment and tourism hotspots or destinations will change. The ‘China Effect’ too will change the property landscape in ASEAN,” the veteran speaker said, adding that funds and Foreign Direct Investments (FDIs) will explore different destinations post-pandemic.
“Wealth will be redistributed, for example, during the pandemic, the healthcare sector is doing very well while the tourism sector is badly hit.”
Tee also gave examples of several huge changes worldwide which he described as “megatrends in a post-pandemic world”. Most notably in the property and tourism sectors, China, which used to contribute the largest number of tourists and investors in many countries around the world, would start focusing on domestic tourism and investment. This is due to the continuing closure of international borders, increasing racial ‘attacks’ against Asians in Western countries, and greater connectivity within China itself such as the wide coverage of its High Speed Rail.
Further, he said: “There will be many “new wars” especially among the superpowers like the US and China. For example, in trade and technology – ‘5G war’, ‘vaccine war’, ‘human rights struggles’ – all will be more prominent. Politics and international diplomacy will play an even greater role post-pandemic as relationships between nations undergo a reset.”
Along with changes in leadership in some countries, there will also be policy changes, he noted. Tech will play a bigger role for example, the use of Mysejahtera, and increasing online transactions. He added virtual tourism might even be possible as tourists’ and investors’ preferences start to adapt to Covid-19.
Tee was the first speaker during the day-long virtual seminar where 10 industry experts gave their insights on market trends. Organised by OCR Group, the Real Estate Summit (RES) 2021, was a crowd puller despite the prolonged lockdown in Malaysia.
[/ihc-hide-content]