I HAVE always been a Star Wars fan. I have watched every single Star Wars movie multiple times. I have worked very hard to convince my two daughters to become Star Wars fans. It was not an easy task, but bit by bit, I have converted them.
I have been writing this column now for nearly a year and a half and have always ended my writing with the words “May the force be with you”, clearly betraying my affinity to the movies. So it is with much glee that I have chosen this as the title for my article this week.
By the time you read this, the 14th General Elections would be over and Malaysia would have gotten down to the serious work of cleaning house and rebuilding the nation. But the euphoria experienced by the rakyat will still be ongoing.
Everywhere you go, there are smiley faces with brand new hope shining bright in their eyes. Finally, after so long, many of us are proud to be Malaysian again.
The election result has given us hope of a new tomorrow, a better tomorrow, a better nation for us and for our children.
As the new team of people in change get down to the difficult business of cleaning house, they will need every bit of support and encouragement from us, the rakyat. After all we have managed to take back control of this country.
The power now belongs to the people, where it rightfully should be. I keep telling myself; never again will I ever give up this power. This power means so much to me and my fellow citizens. This power is insignificant in my hands, but which makes the world of difference when wielded collectively by everyone. This collective power is what makes all the difference.
How will this new hope affect the property market? It is too soon to tell, but I would be very surprised if the market did not start improving almost immediately.
We all know that the property market has been on a decline since 2012. It continued its decline well into last year.
However, the good news is that all indications were that the decline was slowing down and that we would see some improvements this year.
A recent report by the Jabatan Penilaian & Perkhidmatan Harta (JPPH) indicated that the volume of sales for January and February had improved by four per cent. This is the earliest indication of an improving market. The general feeling was that this year would be a better year for the property market compared with last year.
With the general election around the corner, the market waited with bated breath to see the outcome. The result of that was that in the first quarter, due to heavy speculation on the upcoming general election, the market went into a slowdown mode, with investors preferring to adopt a “wait-and-see” attitude.
Two scenarios were possible:
1) Barisan Nasional would win the election
2) Pakatan Harapan would win the election
If scenario 1 had happened, the business community would have heaved a sigh of relief and gone on their merry way. They may or may not have liked the result, but they would be glad that the uncertainty is over, that the long battle is finished, and things would now begin to settle down. The market would have started improving gradually over the second half of the year.
If scenario 2 had happened, there would be initial apprehension at the result. The business community would now be facing a brand new entity in all its dealings.
This uncertainty would have resulted in the “wait-and-see” attitude extending beyond the elections. But the apprehension likely to settle in the short term and the market will have started its upward climb, although far more hesitantly.
No one saw the third possibility. The unimaginable scenario where Pakatan Harapan would win with such a resounding victory. Barisan Nasional now remains a mere shadow of its former self.
Pakatan Harapan is on a high and the feel good factor and euphoria among the citizenry is overwhelming. I predict that this overwhelming feel good factor will shortly spill over into the market. It will start turning into increased sales, not just for the property market, but also to the retail market.
I believe the upward climb will begin to gain momentum this year and will continue its spike as Pakatan Harapan gets down to the business of running the country and cleaning house. This year should certainly register a significant improvement over last year, both in volume of sales as well as total value.
With the zero-rated Goods and Services Tax (GST) from June 1, the market will be further spurred. There will be more disposable income in the market, and this should translate into more sales in all sectors of the market. The property market will also be a big recipient of this, with sales of commercial and industrial properties no longer attracting any GST.
In my opinion, this is the new hope that we have all been waiting for. I believe this is the light at the end of the tunnel.
The results of the election have given everybody hope and this new hope will translate into improvements in the property market.
It is also encouraging that the new government has placed much emphasis on affordable housing. I hope and pray that they finally get the issue of affordable housing right. This has been bandied about for so many years, with so little results to show. This is not a difficult thing to do and all require is iron political will and a sense of fair play and justice.
This new government has the opportunity to start on a clean slate, do things right and get it right the first time, every time. One of the more important things they can do right from the beginning is to engage relevant stakeholders in the real estate industry before making policy decisions on property matters. There are many qualified people around with many years of experience and they have much to contribute. If invited, I am sure we will be happy to serve in any capacity available. Here’s to hoping the government invites us to participate in nation building.
Until then, happy hunting and may the force be with you.
Siva Shanker is a real-estate practitioner who tries to manage the labyrinth of the property market honestly while consistently maintains a high standard of ethics in his practice. He welcomes feedback via [email protected]
