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In the first half of 2023, property sales in Malaysia have surged by more than twofold and are on track to exceed 2019 levels, as indicated by the Real Estate and Housing Developer's Association Malaysia. This resurgence signals a rebound in the industry, despite a notable inventory of unsold completed units. The driving force behind this growth has been the Services sector, benefitting from a revived tourism sector, a thriving real estate market, and improving business services.
During the January to June period, the Real Estate and Housing Developer's Association surveyed 148 of its members, revealing that 11,273 units of residential and commercial properties were successfully sold. This marks an impressive 120% increase compared to the sales figures in the second half of 2022 and surpasses the 11,399 units sold throughout the entirety of 2019.
N.K. Tong, the President of the association, highlighted the presence of a more sustained recovery that is gradually taking shape. He acknowledged the challenges faced by developers, including material price hikes, elevated compliance and utilities costs, and the pressing issue of unsold properties. Tong emphasized that the unsold properties present a significant hurdle, and identified financing challenges, higher property prices, and units designated for the majority of Malaysia's population as key factors contributing to this situation.
Deputy Finance Minister Ahmad Maslan provided figures indicating that Malaysia currently holds 22,746 properties for sale, with a cumulative value of 18.41 billion as of December 2022. The report also notes that Malaysia's property market has experienced fluctuations in home prices and housing demand due to various market dynamics.
Economic conditions play a pivotal role, with a robust economy inspiring confidence among potential buyers who are more financially secure and willing to make substantial investments, such as property purchases. Positive economic indicators include increased employment opportunities, a healthy international trade environment, and political stability.
Additionally, government policies play a significant role in shaping the property market, impacting demand and pricing. Measures such as subsidies, tax incentives, foreign investment policies, and local initiatives like the Home Ownership Campaign (HOC) from 2020 to 2021 have influenced buyer behaviour and market trends.
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