First declared as a world health emergency in January 2020 by the World Health Organization, the COVID-19 pandemic has claimed a total of 767,158 lives as of 17 August 2020. With over 21 million infected, this global public health emergency has far reaching consequences, including a negative impact on the economy.
Covid 19 and its Impact on the Economy
Since its spread to over 200 countries, COVID-19 has negatively affected global economic growth. This is unlike anything we have experienced in our lifetime. It is estimated that this pandemic will decrease economic growth by 3% to 6% in 2020.
2021 has a better outlook, provided that there is no second wave of infections. There is risk for an economic recession and to date, there have been many lives lost, rising poverty levels and increased social unrest. The real impact of COVID-19 can only be measured further down the road.
What’s Happening in the Property Market?
Over the last three decades, property prices in Malaysia declined only in 1998 and 1999 due to the effects of the 1997 Asian Financial Crisis. However, with the country’s partial lockdown in response to the COVID-19 pandemic, there has been a decrease in property listings as well as people who are looking to buy a home.
It is believed that as a result of this pandemic, property prices may decline by 10 to 20 percent and shift from a seller’s market to a buyer’s market. Although it is still too early for accurate numbers, 2020 shows a downward trend in property prices as well as transaction volume in Malaysia’s property market.
Reasons to Purchase a Property Now
1. Good Time to Invest
As with any other investment, the aim is to buy low and sell high. If you have the means, it is a good time to leap into the property market as prices are forecasted to continue to decline for the rest of the year. You will start to reap the benefits of your investment when the economy starts to recover. Additionally, property in the KLCC area is always in demand and easy to rent out.
2. Incentives Offered by the Government
To facilitate home ownership and stimulate the economy, the Malaysian government announced the Home Ownership Campaign on the 5th of June 2020. Incentives in this campaign include:
- Stamp duty exemption for sales and purchase agreements signed between 1st of June 2020 to 31st May 2020.
- 3rd residential property (RM600,000 and above) 70% margin of financing limit uplifted, but still subject to the assessment of financial institutions.
- All Malaysian citizens will be exempted from the real property gains tax from the 1st of June 2020to the 31st of December 2021.
3. KLCC is and will always be a Prime Location
KLCC is and always will be a prime location in Kuala Lumpur. Known as the heart of Kuala Lumpur, KLCC is a commercial, business and entertainment hub. It is already home to numerous condominiums and apartments and there is no stopping more from developing in the coming years.
Property in the KLCC area will always be highly sought after for the prestige that it symbolizes. Its strategic location also means that it is surrounded by an abundance of amenities. There are high end shopping malls, retail outlets and street markets where you can get all that you need. The numerous restaurants and eateries offer a vast variety of food choices from local delights to international cuisine.
Another factor that contributes to KLCC’s popularity is its good accessibility and great connectivity. It is easy to move to and fro from KLCC as well as within KLCC itself. Public transport is widely available and very affordable. You will be able to find all that you need and want in KLCC.
The busy streets of KLCC
Factors to Consider Purchasing a Property Post-Pandemic
Purchasing a property should never be done in a rush. It is wise to do some in depth research to get a clear idea of the property before taking the plunge. Here are a few factors to consider before you put down a deposit:
1. Credit Score
Check your credit score to ensure that you understand your current credit standing. Credit scores are calculated using data from your credit reports. It used to represent your credit risk – whether your will pay your loans on time). Banks will use your credit score to determine your loan interest rates and terms.
2. Check Your Debt
Reduce your debt as much as possible. Now is not the time to apply for new loads or credit cards. Banks will look at how much you owe and consider if you will be able to service your loan before lending to you.
3. Have a Budget
Have a budget and stick to it. Don’t buy a property that is more expensive than you can afford. You will have trouble repaying the loan if you do so. Not knowing the price range you can afford will also hamper the search of a suitable property for you.
4. Put As Much Deposit As You Can
Check if you have enough for a deposit. While some developers offer ‘zero deposit’ schemes, putting a deposit will enable you to pay smaller monthly instalments. It is wise to put in as much deposit as you can.
5. Work with the Right Estate Agent
Choose a real estate agent that you can work with. This may sound like a no brainer, but a good agent will pay attention to what you want and bring you to suitable homes without wasting time at unsuitable property. Make sure you do not get pushed into buying a property that you do not want.
8 Conlay, a property worth considering
One of the best properties to consider in KLCC is 8 Conlay. Located at Jalan Conlay, this development consists of two residential towers, a hotel and lifestyle retail quarters on the lower floors.
Sitting on 3.95 acres of prime land, 8 Conlay is developed by KSK Land Sdn Bhd, a wholly owned subsidiary of KSK Group Berhad. Its architectural design is by the experienced and highly sought after Hud Bakar of RSP Architects.
YOO8 rendering by RSP Architects’ Hud Bakar
Its serviced residence YOO8 serviced by Kempinski is a masterpiece that sets a new benchmark for branded residences in KLCC. Consisting of two spiraled residential towers, YOO8 has a total of 498 units on its 57 floors. Units range between 705 square feet to 1,328 square feet.
Tower A, designed by Steve Leung has interiors that combine a modern style with Asian accents. Tower B, designed by world renowned Kelly Hoppen offers potential buyers the choice between green-focused Spring concept and Urban understated glamour. Landscaping of this project was carried out by Pok Kobkongsanti of T.R.O.P Thailand.
Facilities at YOO8 include a state of the art gymnasium, a water lounge that opens to a 25 meter lap pool and a green refuge that boasts a jogging path, resting nooks as well as a great view of Kuala Lumpur’s skyline. Residents will also be able to enjoy the multi purpose room, the library area, the lounge area and the games room.
Serviced by Kempinski, YOO8 residents will have five star comfort at home. Kempinski is Europes’ older hoteliers and well-known for their old school hospitality. Their services are comprehensive and comparable to no other. From basic concierge and valet services to private chef and an on call tailor, Kempinski is a class act that will enable residents to live in luxury.
8 Conlay is on track to be completed in the fourth quarter of 2020. Its affordable price, strategic location as well as excellent service makes this a property that is worth the consideration.
If you have the means, it is definitely worth considering investing in the property market. Property in KLCC will always be in demand due to its prime location. With property prices on a low right now (owing to the global economic effects of the pandemic) coupled with some great government incentives, it is quite a good time to start doing research to purchase a property that is suitable for you within the next few months.