Real estate agents to invest more in marketing to foreign buyers

Juwai IQI sees more real estate agents and developers turning online to market and launch their developments

by FARA AISYAH/ pic by MUHD AMIN NAHARUL

REAL estate agents will invest more in marketing to foreign buyers to beat their income losses due to the Covid-19 pandemic, according to a recent Juwai IQI market intelligence study.

The Global Coronavirus Agent Survey, which received responses from more than 822 real estate agents in 60 countries, revealed that 22% of agents in Malaysia will increase their investment in marketing to foreign buyers.

Juwai IQI is seeing more and more real estate agents and property developers turning online to market and launch their developments as the Covid-19 outbreak has impacted markets across the board, its executive chairman Georg Chmiel said.

“We are seeing Chinese crossborder enquiries increasing and agents wanting to put more effort on attracting foreign buyers, which is great.

“We can see from China that, despite the lockdown for two months, things are getting back to normal. We will soon see a surge of pent-up activity once the market returns to normal,” he said in a recent statement.

However, the outlook varies by country and market, Chmiel added. As at press time, the novel coronavirus had sickened more than 859,000 people and caused the deaths of over 42,000 across the globe.

Some 31% of Malaysian agents said foreign buyer activity has fallen significantly due to the rapid spread of Covid-19, the study found.

Meanwhile, 23% reported a similar drop in local owner-occupier activity, 27% saw a significant reduction in investor buyers and 18% recorded a decline in renters. As such, they are the least pessimistic agents surveyed for earnings expectations this year.

In Malaysia, 74% of agents expect to earn less in 2020, 38% project to earn “significantly less” and 33% anticipate to earn “a little less”.

Some 53% of local real estate agent respondents feel that the impact of the coronavirus will affect the market for more than three months.

In terms of buying and selling, 35% of agents believe this is a “good” or “very good” time to sell, but 47% believe it is a “bad” or “very bad” time to sell.

However, an astounding 82% of Malaysian real estate agents believe it is a “good” or “very good” time to buy property.

The study also found that 82% of residential real estate agents around the world say the coronavirus pandemic has cut their 2020 earnings expectations.

Globally, 29% of agents say the Covid-19 outbreak has caused a “significant drop” in owner-occupier activity in their local market.

Some 40% of agents worldwide say foreign buyer activity has fallen significantly, while 21% report that renter activity has fallen greatly.

Investors seem relatively unaffected, with only 10% of agents worldwide reporting that locally-based investor buyers have reduced their activity in the market due to concerns over Covid-19.