Malaysian residential real estate market heading for recovery over next 12 months

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PETALING JAYA: The residential property market in Malaysia is heading for a post-pandemic rally over the next 12 months, according to Juwai IQI Malaysia Property Survey and Index Q3’22.

Juwai IQI Group co-founder and CEO Kashif Ansari (pix) said estate agents in Malaysia have told the group that prices and rents are likely to increase significantly over the next 12 months.

“If they are right, we should expect a significant increase in activity. In this scenario, people who own their own homes will benefit from the increase in values, while those who rent or are looking to buy will have to continue. to increase their budget,” Kashif said in a statement today.

Whether agents advise you to buy or rent is a strong indicator of their outlook for the market. Almost nine out of 10 Malaysian real estate agents surveyed said they would advise a friend that it is better to buy today than to rent. In contrast, only 11% said they would advise a friend that it is better to rent today than to buy.

“Agents expect renters to face rate increases over the next 12 months and house prices to rise accordingly. Those buying now would be spared these pressures. When you look at who has the greatest opportunity here, you see that just over a third of Malaysians between the ages of 20 and 39 are renters. This is the highest percentage of renters of all age groups,” said notice Kashif.

The real estate sector expects significant growth in home prices over the next 24 months. Agents estimate home prices will climb 11.8% nationally over the next 12 months. The growth will continue the following year and prices will eventually increase by 16.5% over the next 24 months.

“In Penang, agents predict price growth of 17% in two years. Johor agents forecast price growth of 18.1% over the same period. Agents in Kuala Lumpur and Selangor expect price growth of 15.9%, and agents in Sabah expect price growth of 14.7% over the next two years.

“One of the reasons agents are so optimistic about the real estate market is that they are extremely optimistic about the economy. Forty-five percent of agents think the economy will be a little stronger or a lot stronger. strong over the next six months,” he added.

The big winners of the new housing competition are first-time buyers. Since the onset of the pandemic in early 2020, local first buyers have increased their share of purchases of new development projects.

“During the pandemic, first-time buyers have increased their share from around 30% to around 35% of new development deals. Meanwhile, investors and buyers moving from one home to another have lost around 1% of their market share in new developments,” he said.

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