Property market will improve this year – MIEA

• Market will grow as there is stability in the country
• Secondary market is expected to perform from pent-up demand

The Malaysian property market is expected to improve in 2023 as long as the fundamentals and government’s support through incentives are in check, according to the Malaysian Institute of Estate Agents (MIEA).

Its Real Estate Market Sentiment Survey 2022/2023 shows that most respondents feel the market will improve in 2023, with a more promising outlook on the secondary market.

The survey, which involved 385 real estate practitioners, was done to help understand the sentiments of sellers, buyers, landlords and tenants throughout Malaysia in 2022 and how the market will perform in 2023.

MIEA president Chan Ai Cheng said, the survey reveals that 58.3% of the respondents feel the market will improve and 52.2% says the secondary market will grow in 2023.

Chan said it is noteworthy that about 60% to 65% of all transactions in the country are from the residential sector, which includes the primary and secondary markets.

“The bulk of the transactions are from the secondary market due to its volume all over the country. From a subdued market in 2020 and 2021, and with an improving market, the secondary market is expected to grow,” she said.  

Good demand for new launches

As for new project sales, 40.9% of the respondents believe it will grow this year.

Chan noted that property agents play a critical role in assisting developers in the sale of new projects, and there has always been a good demand for new project launches as investors buy to realise their investments in 24 months for landed property and 36 months for high- rise either through resale or rental.

She said the primary market is picking up and will grow further in 2023.

“Furthermore, it is easier to purchase new projects as the outlay is much less, thereby attracting those first-time house buyers,” she said.

In the survey, 41.7% say enquiries from prospective purchasers increased in 2022 and 49.6% say the expected enquiries from purchasers in 2023 will increase.

Chan said the number of enquiries is important as it reflects the interest of the property seekers, which will eventually lead to successful transactions to reflect the demand.

“We are not surprised at the increase in enquiries, because when the market reopened in the last quarter of 2021, correspondingly the demand went up as movement became easy. People could look at properties again, more marketing and advertising activities took place, and those who waited to invest could view properties.

“This trend followed through till December 2022, and this was reflected in the Q1, Q2 and Q3 National Property Information Centre (Napic) data, which showed that the volume of transactions in 2022 reached 293,206, an increase of 46.86% over the same period in 2021,” she said.

As for the rental market, 67% said this year is expected to be better than 2022 as the number of transactions, population growth, employment rate and transmigration from rural areas to the city have been increasing.

“An improved economy will all contribute to a better performing rental market,” Chan said.

Call for M40‘s needs to be given attention too

Chan also noted that in the last proposed budget, there was a lack of government initiatives to support the property market except for the B40 group.

“The M40 group’s housing needs also needs to be looked into and we request the new government to include in the new budget some of the proposals made by MIEA in our budget proposal to stimulate the secondary market.

“We will continue to support all government initiatives on the property market. The market is to improve and our wish is for all stakeholders to support its growth,” Chan added.