Property market to continue to strive, see more positive outcome in 2024 – MIEA

KUALA LUMPUR: The property market in the country will continue to strive and see more positive outcome in 2024 given many ongoing initiatives that are set for the year amid challenges mainly on the external front.

Malaysian Institute of Estate Agents (MIEA) president Tan Kian Aun said Malaysia has not experienced any sudden collapse or saw negative impact in the past year such as foreclosure that led to many people suffering in the sector.

“Although during the pandemic period there were some setbacks, the good news is that the industry is slowly recovering, where we can see in terms of stable pricing, and revival of some abandoned projects which are also a good sign.

“This shows that people are interested and confident in rebuilding the property sector, or else no one will want to revive the projects,” he said in the virtual MIEA Property Market 2023 Review & 2024 Outlook today.

The Housing and Local Government Ministry reported that as of September 2023, a total of 301 projects or 38,752 housing units with a gross development value (GDV) of RM28.88 billion have been revived and this includes eight abandoned private housing projects with a GDV of RM574.08 million since the establishment of the Task Force on Sick and Abandoned Private Housing Projects (TFST).

The ministry has also revived 266 abandoned private housing projects involving 67,773 housing units and 46,229 buyers in the same period.

Tan said Malaysia also continues to be among the most attrative investment destination with exciting developments such as the Rapid Transit Link (RTS) project in Johor, key industrial projects in the northern region and the Pan Borneo Highway projects in Sabah and Sarawak.

He noted that there are growth potential opportunities in every sector, not just in the Klang Valley but throughout the country, mainly due to the federal and state governments’ initiatives to boost the market particularly for industrial and manufacturing with the New Industrial Master Plan (NIMP) 2030.

Another catalyst, he said, is the infrastructure sector, namely the Penang LRT, the Autonomous Rapid Transit (ART) in Sarawak, and the focus on tourism, renewable and green energy as well as the low carbon initiatives in Sabah and Sarawak, among others.

“All these are high value industries and will boost the economy and the property market in this region.

“The government’s fiscal policy, such as the full exemption on stamp duty for first-time housebuyers (for RM500,000 and below) until the end of 2025, will also encourage home ownership in the country,” said Tan.

In addition, the Housing Credit Guarantee Scheme allocation which was doubled to RM10 billion under Budget 2024 is expected to benefit 40,000 borrowers and the Malaysia My Second Home (MM2H) Visa Liberalisation Plan also showed that the government is committed to stimulate the market.

“The government is also doing a good job in controlling interest rate (current Overnight Policy Rate at three per cent), and making our country a friendlier place to invest in with a more focused direction that are in demand such as incorporating the sustainable living, green and renewable energy elements.

“We don’t expect the government to do something drastic to change the economy landscape but rather taking a step by step approach because it may affect inflation, cost of living and the income gap of the people,” Tan added. – BK