The Malaysian property market looks to be stabilising and is expected to observe a gradual recovery in the first half of 2022, according to PropertyGuru Malaysia’s Property Market Outlook Report 2022.
This is in line with a generally improved outlook for the Malaysian economy, which is anticipated to perform better next year.
The improved outlook is reflected in the recent PropertyGuru Malaysia Property Asking Price Index, which found that prices were back on an upward trend in Q321, indicating that sentiments are improving in tandem with higher vaccination rates, the reopening of commercial activity, and a less restricted environment for consumers.
“As a rebound in the property sector is expected to trail behind more substantial national economic recovery, we will likely see gradual improvements in the market environment in the first half of the coming year, before it begins to pick up the pace in H2 2022,” said Sheldon Fernandez, Country Manager, PropertyGuru Malaysia.
Research by PropertyGuru DataSense, the data analytics and solutions arm of PropertyGuru, found that property activity continued to transpire in Malaysia despite a very challenging environment, albeit at a much-reduced volume.
While the overall number of purchases dropped sharply during the H2 2020 to H1 2021 period, the overall median price for transacted properties moved upwards by 8.5% – the sharpest rise registered since H1 2016.
The fact that median prices continued to rise while transaction volume dropped sharply indicated that buyers who purchased property during this period had solid financial footing and an appetite for higher-priced properties.
“The combination of low-interest rates, depressed property prices, and an incentive-rich environment provided an opportune moment for buyers with the right means to jump into the market. Even at the height of restrictions, their ability to act on purchase decisions was aided by a greater embrace of digital transformation by property.
“PropertyGuru opined that it is a favourable timing for home seekers who are looking to take advantage of low prices while they are on an upward trend and benefit from prevailing low-interest rates while they last,” he says.
They are advised to consider the stability of their finances and job security before making a long-term financial commitment.
Sheldon added, “With prices trending in a positive direction in the final quarter of the year, and sentiments gradually, but steadily improving, it is highly likely more property purchasers will want to catch the potential upswing of market prices while the financial environment remains favourable.
“This is a momentum that is expected to pick up the pace and spill over into 2022.”
PropertyGuru also opined that the current climate is not ideal for those seeking to sell their property for a bigger profit, as sellers are facing competition from a glut of new and unoccupied properties which provided buyers with diverse options.
However, should the market pick up the pace by mid-2022, properties located in high-valued and centralised locales could see promising upticks in offer prices.
Moving forward, PropertyGuru foresees several trends that will impact the Malaysian property sector in 2022. Among them include: The stabilised market will revive buyer interest, the improved economic environment for property seekers, progressive policies for a changing landscape, ongoing mega projects to enhance future prospects, and terraces remain the top choice for buyers.
