Malaysia’s property market expected to be stable, set for gradual recovery
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Loading... - Donghai Huang
- 10 Feb 2023
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Malaysia’s property market is expected to be stable this year, aligning to the path of gradual recovery and eyes are now on the retabling of Budget 2023 for what “goodies” it may offer for the property market, said Rahim & Co, one of the largest real estate consultancies in country.
Its executive chairman, Tan Sri Abdul Rahim Abdul Rahman, said in a press conference today: “With policies and strategic development roadmaps in place as well the potential catalytic impact of major infrastructure developments that should be continued, optismism underpinned by stronger economic pillars and a reignited demand driver is hoped for the country.”
He said the property market will see a gradual recovery despite cautious sentiments amid the anticipated economic headwinds in 2023, especially after transactions in 2022 proved that the market is resilient, with a significant rebound in overall market activities.
In his welcoming address at the launch of the company's Property Market Review 2022/2023 in Kuala Lumpur, he said as 2022 began with the continued expectations for a recovery that was initially hoped for in 2021, transactional activities and economic indicators were seen amid cautious sentiment among developers, investors and homebuyers.
He added: “The market faced continuous challenges of high cost of living and economic uncertainties while being dampened by inflationary pressures and rising interest rates. Nevertheless, all states, in the first half of last year, registered transaction activities higher than the first half of 2021 and even that of the first half of 2019, before the world was shocked by the Covid-19 pandemic.”
Meanwhile according to research director Sulaiman Saheh, the total volume of property transactions for the country increased by 34.5% year-on-year in the first half of 2022, and increased further to 45.8% up to the first nine months of the year.
“The total value of transactions increased by 36.1% in the first half but slowed down slightly by the end of the third quarter though yet still recorded a 33.7% growth. By no means does this indicate a full recovery of the market, but it is more of a resumption of the rebounding trend that started in 2018/2019 which was severely interrupted in the pandemic and lockdown-laden 2020/2021,” he added.
It was also disclosed that economists have varying opinions on the degree of impact to Malaysia, global headwinds will test the resilience of the country’s economy and domestic markets. Additionally, the Ministry of Finance foresees 2023 to slowdown to between 4% and 5% against the backdrop of softening world economic growth and trade due to inflationary pressures, tightening financial conditions, supply chain strains and geopolitical fragmentation. Read More…
