Malaysia’s property market is showing signs of recovery, with improved volume and value in property transactions in 2023, according to Housing and Local Government Minister Nga Kor Ming. Speaking at the Rehda Institute’s Regional Housing Conference 2024, Nga highlighted that Malaysia saw 399,000 property transactions worth around RM200 billion last year, marking a 2.5% growth in volume and a 9.9% increase in ringgit value.
One of the key indicators of the market’s recovery is the significant decrease in completed unsold properties, also known as overhang units. Since the MADANI government took office, the number of overhang units has dropped to less than 24,000 from 37,066, representing an improvement of over 40%. This reduction in overhang units bodes well for the overall health of the property market in Malaysia.
Nga expressed optimism about the property market’s performance in 2024, noting that it is expected to contribute positively to the country’s gross domestic product (GDP). He pointed out that property stocks have seen appreciable growth, with some properties appreciating by more than 600% over the past year.
Rehda Institute, an independent industrial think tank focused on housing research and education, plays a crucial role in providing insights and recommendations for the housing sector. At the conference, Nga witnessed the launch of a report titled “Affordable Housing II – Closing the Gap: A Strategic Approach to Balancing Supply & Demand” by Rehda Institute, highlighting the importance of addressing the affordable housing issue in Malaysia.
In addition to the positive trends in the property market, Malaysia has also seen an increase in the number of working permits issued to high-skilled expatriates. In 2023, 154,115 working permits were issued, a significant rise from 110,819 in 2022. This surge in high-skilled expatriates suggests that Malaysia is attracting foreign direct investments (FDIs) and creating more job opportunities in the country.
Furthermore, the Housing Integrated Management System (HIMS), launched earlier this year, aims to streamline processes and improve efficiency in the housing sector. The system facilitates tasks such as applying for developers’ licenses, generating electronic sale and purchase agreements, and providing updates on housing projects and compliance issues. By integrating information from HIMS to TEDUH (Sistem Bank Data Perumahan), individuals can access real-time updates on licensed housing projects, enabling them to make informed decisions and streamline their property search process.
Overall, the positive developments in Malaysia’s property market, coupled with initiatives like the HIMS and efforts to address affordable housing issues, are expected to contribute to the country’s economic growth and attract more investments in the coming years.