This article first appeared in The Edge Financial Daily on November 18, 2019

KUALA LUMPUR: The mood was ebullient at The Edge Investment Forum on Real Estate 2019 on Saturday morning at the Malaysia International Trade and Exhibition Centre (MITEC), Kuala Lumpur, where the event drew a crowd of over 400 participants.

The 13th edition of the annual forum with the theme “To buy or to rent: What and where?” was organised by City & Country, the property pull-out of The Edge Malaysia weekly. The event was sponsored by Matrix Concepts Holdings Bhd and Paramount Property Development Sdn Bhd and supported by EdgeProp.my.

City & Country editor Rosalynn Poh remarked in her opening address that coming up with this year’s theme was quite a challenge.

“As we all know, the property market has been rather slow or some say challenging for the past years ... during the good old days we could basically just focus on buy, buy, buy. However today, things are a bit different.

“We hope by the end of this forum we will head home with a clearer picture and information on how to make better investment decisions,” she said.

Speakers at this year’s forum were CBRE | WTW managing director Foo Gee Jen, Rahim & Co International Sdn Bhd chief executive officer of real estate agency Siva Shanker, Property Auction House Sdn Bhd executive director Danny Loh, Zerin Properties real estate negotiator Natasha Gideon and Chur Associates founder and managing partner Chris Tan.

Foo, in his “Market outlook for 2020 & how has 2019 performed so far?” noted that the property market remained flattish this year.

“In the first half of 2019, despite having the Home Ownership Campaign (HOC), which has drawn quite a big sale, the market has improved only marginally. The volume has increased only by merely 6% to 7% and in terms of value, less than 1%,” he said, adding that a more organic demand is needed in the absence of HOC next year onwards.

While the high-rise residential and purpose-built office sectors are facing an oversupply situation, opportunities can still be found in the hotel and industrial sectors, as Foo highlighted. He added that the secondary market is still active with good properties to be found.

Foo further anticipates infrastructure developments such as upcoming highways like the Damansara–Shah Alam Elevated Expressway, the South Klang Valley Expressway, the East Coast Rail Link, the West Coast Expressway and the Sungai Besi-Ulu Kelang Elevated Expressway, as well as the Mass Rapid Transit 2 and the Light Rail Transit 3 to drive the property market.

Speaking on the topic of “Buy, rent or buy-to-rent?”, Siva anticipates a growing number of renters in the market as salaries cannot keep up with the growing property prices, on the back of a shortage of homes in the country.

“There will be even more people who cannot afford to own a property … coupled with the younger people that are of a mindset that there is no need to buy a house as their thinking is different and many of them are unable to save up enough to buy even their first house,” Siva remarks.

In addition to the pros and cons of buying and renting, Siva reminded the audience to adopt a long-term approach when investing in a property. “Don’t buy on a whim. Do your research. Don’t be greedy. There are no quick riches. Property is a long-term [investment].”

As this is the first time an auction talk is given in the history of the forum, Loh started it off by giving the basics of property auctions in Malaysia in his topic “Auction 101”, including the auction process and procedures, benefits and risks of buying an auction property as well as things to look out for.

When it comes to issues of vacant possession, whereby there are still people living in a property bought at an auction, Low advises such purchasers to use the soft approach in getting them to move out. “Talk to them nicely. if you can’t evict them, then apply for a court order.”

To mitigate or prevent unwanted surprises when buying an auction property, Loh stresses the importance of due diligence, research and inspection as well as understanding the terms and conditions of sale.

“As you can’t view the inside of the property, you need to visit the premises and talk to the neighbours or even the existing tenants,” he notes. He further advises bidders to check their financial standing with banks and whether the financial institutions are able to provide financing for the particular auction property.

Natasha, who was the millennial speaker of the day, acknowledged the wants and needs of the millennial population in the property market and how it differs in reality from what the market offers in her topic, “Millennials and home ownership”.

“Affordable homes are quite a drive from public transportation and further from the city … properties in central locations start with too high a price. Would you rather pay more and live closer to where you work or pay less and live in a landed property further away?” she said, noting that owning a landed property in a good location is a dream for many millennials.

She also revealed that many in the millennial age group are not equipped with the necessary know-how when it comes to buying or investing in property and that many feel pressured by society to own a home.

“I personally think it’s a buyers market because of the soft market but only if you have the capacity to do so. Before you decide to buy and live in a property that you’ll be committed to for 30 years, rent in the property,” she advised.

Speaking on “The evolution and legal aspects of home ownership”, Tan discusses the implications of the seemingly unregulated world of technology disruptors that is changing the concept and redefining boundaries of homeownership.

“The evolution of a home has changed form. With connectivity and globalisation, mobility and freedom of movement, home has a different concept and space is redefined … homeownership is a journey that changes through time under new circumstances and requirements,” he said, adding that the agility to commit and decommission quickly is at a premium.

Some of the new concepts to look forward to, as Tan pointed out, are the Rent-to-own schemes under the Budget 2020 as well as those offered by private developers, transit housing offered by Kuala Lumpur City Hall, property crowdfunding, co-living concepts, collective ownership and segregated home usage with specifications.

“The next 10 years is the last chance of individual property ownership and as there are increasingly more tenants in the market, more property management skills are expected.”

The investment forum concluded with five lucky winners taking home Smeg and KitchenAid kitchen appliances.