Do you actually keep up with the on-going trend in Malaysia’s Property market?
In recent times, Malaysia’s Property market has been going through changes with rising trends and challenges. But does that put an effect on homebuyers and investors alike?
Here’s A Quick Recap
According to Muhazrol Muhamad, GVP, Head of Bumiputera Segment;
As of the latest update on September 18, 2024, the first half of 2024 has revealed significant trends in Malaysia’s property market, particularly in the;
Residential, Industrial, and Commercial sectors.
With that, together we explore the key takeaways on the on-going trend in Malaysia’s Property market!
Residential Sector: Stability Amidst Variability
The residential market, while resilient, has shown variability in activity levels across different property types, with a nuanced slowdown in growth compared to the previous year:
- Transaction Volumes and Values: The volume of transactions has decreased by approximately 5% year-over-year, indicating a slight cooling compared to the heated activity seen in previous years.
- Overhang and Unsold Units: The overhang in the residential sector has increased by 2% compared to the same period last year, signaling a slower absorption rate, particularly in the luxury and higher-priced segments.
Industrial Sector: Sustained Growth
The industrial property market continues to expand, fueled by recovery in both domestic and international markets:
- Warehousing and Manufacturing Spaces: Demand for these spaces has increased by about 10% over the last year, particularly in well-connected areas offering modern, efficient facilities.
- Market Expansion: The planning and development of new industrial properties have risen by around 15% compared to last year, reflecting strong investment appetite and strategic enhancements to Malaysia’s logistical and manufacturing capabilities.
Commercial Sector: Adjusting to New Norms
The commercial sector, particularly office and retail spaces, has undergone an adjustment period due to evolving work and consumer behaviors
- Office Spaces: The Purpose-Built Office Rental Index (PBO-RI) has shown a decrease of 0.5% in Klang Valley, indicating a market in search of equilibrium as businesses reassess their space needs post-pandemic.
- Retail Spaces: Recovery in the retail sector remains slow, with foot traffic still down by about 3% compared to last year, underscoring the lasting impact of e-commerce on traditional shopping behaviors.
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