Property market on recovery path, says minister

PETALING JAYA: The property market is on the road to recovery and will see a further improvement this year on the back of an improved economic outlook, says Housing and Local Government Minister Nga Kor Ming.

Citing a report from The Star, Nga also said the rising number of expatriates entering the country will be a boost for the property market outlook.

“For instance, recently, The Star reported Malaysia had now become a magnet for expatriates. The immigration department statistics for 2023 showed that it had issued 154,155 working permits to expatriates, which is one of the highest numbers in decades.

“When compared to 2022, the immigration department issued some 110,000 that year.

“This is an increase of nearly 50% in terms of the number of expatriates who are attracted to move, work and live in Malaysia – this is a strong sign for recovery,” Nga said in his speech at the Real Estate and Housing Developers Association of Malaysia (Rehda) Institute Regional Housing Conference 2024.

“I am also very sure that Malaysia’s property market is not in a bubble now, so there is no (bubble) to be burst.

“We have made slow but steady growth in the property market. This signifies the improved conditions of the market locally,” Nga added.

He said the next three years could see a further recovery and growth in the sector, following the rebound in property stocks on Bursa Malaysia.

“Some of the top-performing counters have seen up to a 700% growth in share price in the last one year. This signals that our property market is on the steady road to recovery.

“This is why the market must have confidence that we will attract more international players as well as domestic players,” he said.

Apart from these, he said another positive indicator was that the property market had recorded more than 399,000 transactions last year with close to RM200bil in terms of value, which signifies a year-on-year increase of 2.5% and 9.9% growth respectively.

“The housing industry is a very important element of the economy and we need to enhance this industry’s reputation and growth, so that it will continue to contribute to the country’s coffers.

“The economic multiplier in the business and supply chain is high. However, the business must be structured to ensure it remains vibrant and healthy at the same time. This gives confidence to the purchasers and protects their interests as well.

“I am not pro-developer, neither am I pro-buyer, and this is my duty. The Housing Ministry is always here to provide a fair and balanced view, even though we engage Rehda,” Nga said.

Meanwhile, he said the government was in the midst of defining different affordable price thresholds for different states and localities in the country.

“It will be a more scientific guide based on statistics and data. Previously under the National Housing Policy 1.0, the overall definition of affordable housing was not more than RM300,000.

“But the price of affordable homes in Kelantan, for example, and Kuala Lumpur was measured on the same threshold of RM300,000 which doesn’t make sense,” he said.

“As such, we are prepared to come up with a more realistic definition of affordable housing according to each region – for example the Klang Valley or the east coast region,” he added.

Nga also noted the new Affordable Housing 2 report by Rehda Institute that was done in collaboration with researchers from University Utara Malaysia, Bank Pembangunan Malaysia Bhd and various other organisations, which will provide some new research insights on how housing affordability could be better measured and considered.

It will take into consideration the expenses and net disposable income of each urban household, he said.