PROPERTY NEWS: In the upcoming year, Malaysia's residential real estate market is expected to rebound

Key takeaway:

Juwai IQI Malaysia Property Survey and Index Q3'22 predicts that during the following 12 months, the residential real estate market in Malaysia would see a post-pandemic recovery.

Real estate brokers in Malaysia indicated to the company that prices and rentals are anticipated to rise dramatically over the following 12 months, according to Kashif Ansari, co-founder and group CEO of Juwai IQI.

"We should anticipate a sharp rise in activity if they are correct. In that case, individuals who own their own houses would profit from rising prices, while others who rent or are looking to buy will need to continue tightening their budgets", said Kashif in a statement released today.

Whether agents advise you to purchase or rent is a good indication of how they feel about the market. Nearly nine out of ten Malaysian real estate agents polled indicated they would suggest to a friend that it is preferable to purchase now than to rent. Only 11% of respondents indicated they would tell a friend that renting is preferable to buying at the moment.

"Agents anticipate renter rate rises over the upcoming 12 months and similar increases in home prices. These pressures would not apply to those who purchase presently. More than one-third of Malaysians between the ages of 20 and 39 are renters, which indicates that they represent the group with the most opportunities in this country. That is the age group with the biggest number of renters", said Kashif.

Over the next 24 months, the real estate sector anticipates a major increase in home prices. Over the following 12 months, agents predict a nationwide increase in house prices of 11.8 per cent. The following year, the growth will continue, with prices ending up 16.5 per cent higher over the following 24 months.

Agents in Penang anticipate a 17 per cent price increase over the next two years. Agents in Johor predicted a price increase of 18.1% during that time. Over the next two years, agents in Sabah estimate price rise of 14.7%, while those in Kuala Lumpur and Selangor expect a price growth of 15.9%.

The fact that estate agents have such high economic expectations is one factor contributing to their bullish outlook on the housing market. In the following six months, 45% of agents anticipate the economy to grow significantly or moderately.

First-time buyers stand to gain significantly from the competition for new houses. First-time local purchasers have boosted their percentage of new construction project acquisitions since the pandemic started in early 2020.

"During the pandemic, first-time purchasers raised their proportion of new construction sales from 30% to nearly 35%. "At the same time, both investors and buyers who were upgrading from one property to another lost around 1% of their new development market share," he added.

©️ July, 2022, thesundaily.my