What Happened To The Real Estate Industry After COVID-19
Everything that belongs to someone such as land, object, estate, house, apartment, and many more is called property. Property shows or represents the right of ownership to the ones who purchased or acquired something which can also be used for their future businesses and for their needs in life. Owning a property is never been that easy because you need a large amount of money in order to purchase the property. Even renting an apartment or a house needs to be paid every month, and for that reason, you need to have some income so you can pay the rent. The airline, shipping, and delivery companies can also be called properties because it belongs to someone else.
However, since we’re in the middle of a very contagious viral pandemic known as COVID-19, many of the financial markets and the economy have been affected throughout the entire world. This pandemic that just began last December 2019 will spark a worldwide crisis that impacts the entire mankind. And this had caused some of the financial markets and property industries to go down because they couldn’t gain any income due to the fact that people are forced to stay in their homes to protect themselves from getting infected.
The average number of Malaysians who like to purchase or rent properties like houses, condominiums, and apartments may also decrease in a large amount. Since we are facing this global pandemic, the government of Malaysia forced some property industries to decrease house prices as well as rent because some people cannot work from home such as seafarers. For this reason, their income would fall and remain unbalanced and may result in bankruptcy. Understanding the risks of investing a property is very important as it plays a vital role and sustainability in your business especially during this COVID-19 pandemic. You need to be smart enough in making decisions in order to be financially stable in your business. Due to this pandemic, many could reduce production, which would certainly hinder critical decisions on development or relocation in companies and employees.
The country’s economy is being stumbled by the COVID-19 pandemic. All of the nation’s industries that widely helped their economy has been awfully affected and the worst is that businesses such as transportations due to the fact that international travels were banned and the other nations locked themselves up as to prevent from spreading diseases. Malls, computer shops, and restaurants are also widely affected. Some shopping companies may be forced to be closed in malls as they will be experiencing low income, thus the owner of the mall also loses some of his/her income as well. The demand for buying land, houses, beach resorts, restaurants, and many more may potentially decrease as people are now staying inside their homes and trying not to spend much money for their future needs.
In conclusion, this pandemic gradually affects the properties of some businesses, especially in the areas like KL Sentral, Johor Bahru, Mutiara Damansara, Bandar Sri Damansara, Kota Kinabalu, and some independent house renters not just in Malaysia but also the entire world.