KUALA LUMPUR: The anticipated commercial rollout of the Covid-19 vaccine by the first half of 2021 (1H21) will boost the hopes for the country’s economic recovery and lift overall consumer sentiment, said property consultancy Knight Frank Malaysia.
Managing director Sarkunan Subramaniam said, however, that due to the current ongoing political uncertainties amid the worsening Covid-19 crisis, the residential market is expected to remain challenging in 1H21.
“This had led property buyers as well as developers to rethink their future plans and strategies,“ he said in a statement in conjunction with the launch of its Real Estate Highlights 2nd Half of 2020 research report today.
On the retail and hospitality segment, the report said transactional activity remained lacklustre as investor confidence and sentiment continue to be undermined by the pandemic.
Newly appointed deputy managing director Keith Ooi said: “With Covid-19 remaining as a key concern, occupancies and rents are expected to decline moderately in the coming year.
“However, we anticipate that values of prime grade retail assets should remain relatively stable despite the rental decline, given their more resilient tenant and lease profiles, and the fact that yields will be buffered by the existing low interest-rate environment.”
Executive director of capital markets, James Buckley is optimistic that as the vaccine is rolled out globally and borders are reopened, international tourists will begin to return in 2H21, but it is likely to take some time to recover to pre-pandemic levels. – Bernama