Mr. Soma Sundram, Founder and Secretary-General of ARENA and the CEO of MIEA. Image from: MIEA
Many countries have been badly affected as the COVID-19 pandemic hits home. The real estate industry particularly has slowed down in many nations due to the imposition of social distancing and the Movement Control Order (MCO) being implemented.
The MIEA HOPE Programme webinar series organised by the Malaysian Institute of Estate Agents (MIEA) on MIEA’s platforms since 19th March, 2020, aims to help members of MIEA to enhance themselves during the MCO period.
The MIEA webinar on the 16th April 2020, entitled ”Our Lessons Learned” was the first ASEAN Real Estate forum on COVID-19 and its impact on the real estate industry. Those invited were the Asean Real Estate Network Alliance (ARENA) Council of Presidents from Singapore, Thailand, Cambodia, Philippines, Indonesia, Myanmar and Malaysia to exchange their views on the current situation of their Real Estate industry in their respective countries.
Representing Singapore was Herman Yeo, President of Institute of Estate Agents (IEA), from Thailand, Dr. Sopon Pornchokchai, Secretary-General of Thai Appraisal & Real Estate Foundation (TAEAF), from Cambodia, Chrek Soknim, President of Cambodian Valuers and Estate Agents Association (CVEA), from the Philippines, Dr. Samuel Lao, President of Philippine Association of Real Estate Boards Inc (PAREB), from Indonesia, Jaya Cahyadi, Vice president of Assosiasi Real Estate Broker Indonesia (AREBI), from Myanmar, Khin Maung Than, President of the Myanmar Real Estate Services Association (MRESA) and from Malaysia, Lim Boon Ping, President of MIEA. The forum was moderated by K. Soma Sundram the founder and Secretary-General of ARENA and the CEO of MIEA.
Lim highlighted that as was the situation post the 1997 financial crisis, there will be a significant shift in the property transaction market from a seller’s market to a buyer’s market and property prices and transactions are expected to make its adjustment. The property market is also expected to see a price adjustment in the region of 10%. He also revealed that there will be motivated sellers in Malaysia selling secondary market properties to investors without property viewing, with some negotiators having already been doing that.
Jaya said that although the real estate industry was suddenly put on hold due to the COVID-19, many people also noticed that it is a good time to invest. However, it is unlikely that Indonesian's will be looking into investing in other countries due to the current exchange rates but there are still many opportunities in its local market for them to undertake purchases.
He also highlighted that there will be a “shift in wealth” especially for those involved in industries that are thriving during COVID-19 and this is the time for Registered Estate Agents and Negotiators to build new clientele so when the real estate industry rebounds, they will be prepared. Now, would also be the best time to get connected with their clientele to get to know them better.
According to Mr. Sopon, real estate agents are still allowed to meet potential clients and there were also a good number of property launches last month in Thailand. He believes the COVID-19 had the greatest impact on the lower-income groups, hence property transactions for the luxury segments are still doing considerably well and property rentals are still ongoing at the moment due to the high population of foreigners.
The Moderator Soma raised a question on a report by the International Monetary Fund (IMF) released recently stated that five ASEAN countries including Malaysia, Indonesia, Thailand, the Philippines and Vietnam are set to expand in gross domestic product (GDP) by 9%, 8.2%, 6.1%, 7.6% and 7% respectively. Lim said this showed that there is still great confidence in the ASEAN region. All Presidents concurred that they expect the real estate market to bounce back as it is already down and also due to the government's support and the motivation of all citizens to spur the economy. The sentiment expressed was that all Registered Estate Agents and Negotiators not to give up as economic activities are expected to bounce back in 2021.
The ARENA council of presidents were also of the opinion that now would be the best time for real estate practitioners in the region to partake in self-improvement courses via online platforms, maintain a positive mindset and stay united for the cause of the profession and its duty to the public. This forum saw a record number of attendees both at the webinar and also Facebook Live.
MIEA HOPE programme will be continuing with an assemble of speakers and forums through their Facebook platforms and ZOOM, every day at 10:00 am and 3:00 pm, to help members improve their professionalism and overcome possible obstacles during and after the MCO period.
(17 April 2020)
