Hey there! Feeling like taxes are a maze you just can’t figure out? Does all the news about Malaysia’s changing Sales and Service Tax (SST) sound like financial jargon that might hit your wallet, especially when it comes to finding or keeping a roof over your head or a place for your business?

Trust us, the new rules kicking in soon have many people scratching their heads, wondering how they will affect property prices and rents.

But don’t sweat it! We’re here to explain it in simple terms so you know exactly what’s happening and how it might impact you and your real estate plans in Malaysia.

Here are the key takeaways about how Malaysia’s expanded SST could impact real estate:

Key Takeaways:

• Starting July 1, 2025, service tax will apply to several new areas, including construction services and commercial rental and leasing services.
• Residential properties and building work directly related to purely residential housing projects remain exempt from service tax.
• Construction services for non-residential and mixed-use buildings (such as offices, shops, and homes within a mixed-use project, provided the project is approved accordingly) are now subject to a 6% service tax if the service provider exceeds a certain threshold.
• Commercial property rental and leasing services are now subject to an 8% service tax if the service provider exceeds a certain income threshold. However, there are exemptions for residential rentals, very small businesses, and certain business-to-business (B2B) situations.

1. What Exactly is This Expanded SST Hitting Malaysia’s Real Estate?

Okay, let’s cut through the tax talk. Malaysia already has a Sales and Service Tax (SST). Think of it like a tax added onto certain goods when they’re sold or specific services when they’re provided. It has been around, but according to the Ministry of Finance¹, the government is making some updates starting July 1, 2025.

The government states that its primary objective is to expand the tax base slightly to support public services, but in a manner that’s “targeted” so as not to disproportionately burden individuals, particularly when it comes to daily essentials. The big news is that service tax is now being applied to certain services that were previously exempt from taxation².

These include services such as construction and renting out commercial properties. Since real estate development and rental involve, well, construction and renting, people are discussing how these changes could shake up the property world.

2. Will Buying a New House in Malaysia Get More Expensive After July 1, 2025?

Many potential homebuyers will probably ask this question. The new rules introduce a 6% service tax on construction services. This applies if the taxable service value of the construction service provider exceeds RM1.5 million annually. The RM1.5 million threshold means that smaller contractors undertaking minor jobs might not reach this threshold, but most developers working on larger projects will.

Now, here’s a critical point, and some good news: Construction work specifically for residential buildings and public facilities directly related to these residential buildings is exempt from service tax. This was clearly stated by the Housing and Local Government Minister, Nga Kor Ming, after discussions with the Finance Minister II, Datuk Seri Amir Hamzah Azizan.³

The government has also maintained a 0% sales tax on basic construction materials, such as cement, sand, and aggregates, which helps keep essential supplies affordable.⁴ Therefore, if someone is building a standalone house on land approved solely for residential use, the construction service for that house and the basic related amenities within that residential area shouldn’t have the 6% SST added to them.

Think of it like building your dream home from the ground up on a plot designated just for houses; the main building job here generally remains tax-exempt for service tax.

However, and this is where things become a bit murky and worry some individuals, especially industry players like the Real Estate and Housing Developers’ Association (REHDA)⁵.

They argue that even with residential exemptions, increased costs from taxes on other parts of their business or other types of construction (like commercial or mixed-use) could indirectly lead to higher property prices overall.

For example, if a developer builds commercial properties and residential properties, some increased costs from the commercial side could be factored into the business’s overall pricing strategy. REHDA president Datuk Ir Ho Hon Sang highlighted that the industry already pays indirect taxes on materials and labour, and the SST adds to this burden.⁶

Works Minister Datuk Seri Alexander Nanta Linggi expressed that, despite these concerns, the government expects the SST expansion to have a limited impact on house prices, partly due to the residential exemption and transitional measures, such as a 12-month exemption for certain existing non-reviewable contracts.⁷

3. Will Renting an Office or Shop Space Be More Expensive?

Okay, switching gears to rentals. If you rent a space for your business, such as an office or a shop, this area is changing. Rental or leasing services are now subject to an 8% service tax.⁸ This applies if the person or company providing the rental service (the landlord) has a total leasing or rental income exceeding RM1 million for the past 12 months.⁹

This threshold means that very small landlords might not be affected, but larger property owners and management companies will likely be.

What counts as commercial rental? It covers activities such as leasing office buildings, shopping centres, warehouses, and renting out machinery, vehicles, or other tangible assets used for business purposes. For example, you are renting a printing machine for your business. If the rental company is large enough, you could now incur 8% SST.

a. Revenue Threshold Check:

In July 2025, such companies must assess whether their rental income has reached RM1 million over the past 12 months.

b. Registration Requirement:

If the threshold is met in July, the business must register for SST by August 2025.

c.Effective Date of Charging SST:

They will only need to begin charging SST from 1 September 2025, allowing a lead time of over two months from today.

But wait, there are key exemptions here too!

• Residential property rentals are exempt from this tax. So, renting a house, apartment, or even residential units like SOHOs (Small Office Home Offices) is off the hook. Imagine renting a condo to live in that won’t suddenly have 8% SST added.¹⁰
• If your business is classified as a micro, small, or medium enterprise (MSME) and has annual sales under RM500,000, you, as the lessee, might be exempt from paying the service tax on your commercial rent.
• There are also Business-to-Business (B2B) exemptions for rental and leasing services to avoid something called “cascading tax” (where tax is added multiple times in a supply chain). In simple terms, if a registered business rents to another registered business, which then rents it out again, the intermediate step may be exempt; however, the final rent paid by the end-user business remains subject to tax if the thresholds are met.
• Existing contracts that cannot be reviewed or renegotiated (“non-reviewable”) get a 12-month exemption from the effective date.

The Malaysia Retailers Association highlighted that rent is a significant fixed cost for businesses, and passing this tax to tenants could strain retail companies and consumers. CIMB Securities noted that this tax pressure on tenants could limit REITs’ ability to increase rents for existing tenants.¹¹

Revenue Threshold Check:
In July 2025, such companies must assess whether their rental income has reached RM1 million over the past 12 months.
Registration Requirement:
If the threshold is met in July, the business must register for SST by August 2025.
Effective Date of Charging SST:
They will only need to begin charging SST from 1 September 2025 — allowing a lead time of over two months from today.

4. What About Serviced Apartments and Homes in “Mixed Developments”? Are They Taxed?

Okay, this is where it can get a little confusing, and it’s a big point of concern for developers like REHDA. A serviced apartment, even if people live in it, is often built on land zoned for commercial use or as part of a project that includes shops, offices, or hotels alongside residential units. These are called mixed developments.

According to the official Guide on Construction Work Services from the Royal Malaysian Customs Department, construction services for mixed-use buildings are subject to service tax, and this applies to the total contract value for the entire building, including the residential and public utility areas within it, if approved by the local authorities for mixed development.

Therefore, if you’re building a tower with retail on the bottom floors and serviced apartments above, the construction service for the entire tower could be taxed at a rate of 6%.

Think of building a tower block that’s going to have shops, a gym (maybe considered a public facility), and serviced residences all rolled into one.

The official guidance states that the construction of the entire building is subject to a 6% service tax if the contractor’s annual services exceed the threshold.

REHDA president Datuk Ir Ho Hon Sang voiced strong concern that in city centres where land is scarce, residential units (like serviced apartments) are often built within these mixed developments. Subjecting the construction services for these buildings to SST, he believes, will inevitably lead to increased housing prices for the final buyers.

He noted that even affordable housing under government schemes could be affected if it is located on commercial land as part of a mixed-use project.

This contrasts with building services for a standalone apartment building or a housing estate on land zoned only for residential purposes, which remains exempt from the service tax. It’s a distinction based on the type of development approval, not just whether people live there.

5. How Does This New Tax Change Impact Property Developers and Builders?

It’s not just about potential price hikes for buyers or rent for tenants; this expansion significantly affects the businesses that build and rent these properties. For property developers and construction companies, the new service tax on construction (6%) and commercial rental (8%) can add to their operating costs.

Industry associations, such as the Master Builders Association Malaysia (MBAM) and REHDA, have appealed to the government, warning that adding a 6% service tax to construction services will strain cash flows, disrupt existing contracts, and potentially lead to project delays or cost overruns.¹² MBAM president Oliver Wee noted the industry already faces multiple layers of taxes.

Maybank Investment Bank (Maybank IB) indicated that for ongoing projects that have already been sold, developers may need to absorb the additional 6% construction cost, which could squeeze their profit margins, particularly for commercial and industrial builds. Maybank IB also highlighted concerns that developers involved in data centre construction may face increased costs and potentially reduced internal rate of return.¹³

For rental income (from commercial properties such as malls or offices), while the 8% SST is typically borne by tenants, developers who own these properties worry that this might make it harder to negotiate rental increases, especially if the economy is slow.¹⁴ Maybank IB noted this could ‘restrain developers’ leverage for rental increment negotiations’.

So, while there’s relief that pure residential construction is exempt, the tax on commercial and mixed-use construction, as well as commercial rental, adds new cost lines for developers and builders. They’re hoping for more straightforward guidelines on how existing contracts are treated and adequate time to adapt business models and pricing strategies.¹⁵

The Federation of Malaysian Manufacturing (FMM) noted they weren’t consulted on the service tax expansion and are pushing for more straightforward transitional guidelines.

6. I’m Buying / Renting / Investing. What Should I Do Right Now?

Okay, so with all this swirling around, what’s a person like you to do if you’re thinking about property in Malaysia?

a. Homebuyer

Understand that while the construction of purely residential buildings is exempt, indirect costs or taxes on elements of mixed developments could still potentially influence prices. If you’re looking at a serviced apartment or a unit in a building with shops or offices, ask the developer specifically about the project’s classification and whether the construction tax has been factored into the price.

While official sources indicate that construction is taxable for mixed development, how it affects the final sale price to you is something to clarify directly with the developer. Remember that even if construction costs go up, final pricing is always subject to market demand.¹⁶

b. Home Renter

Good news! Residential rentals are explicitly exempt from the new 8% SST. So, this tax change shouldn’t affect your house or apartment rent.

c. Business Owner

This is where you need to pay attention. If your landlord is a business that exceeds the annual rental income threshold of over RM1 million, your rental service is likely subject to 8% SST starting July 1, 2025. Check if your business qualifies as an MSME with annual sales under RM1 million, as you might be exempt.

Review your lease agreement and discuss it with your landlord to determine if and when this tax will be applied to your rental payments.

d. Investor

If you’re buying a residential property to rent out as a home, that rental income isn’t subject to the new tax. If you’re investing in commercial property or units in mixed developments, be aware of the potential for higher construction/acquisition costs due to the 6% tax on construction services for such projects, and the 8% tax that will apply when you rent out that commercial space (if your rental income hits the RM1 million threshold).

In any situation, understanding your specific circumstances and potentially getting advice tailored to you is key.

7. Getting Ready: Understanding Timelines and Finding Help

The big date everyone’s been talking about is July 1, 2025. That’s when the expanded SST framework officially comes into effect for these new services, including construction and commercial rentals.

Recognizing that this is a significant change, the government has announced a grace period until December 31, 2025, for businesses to comply with SST registration and reporting requirements.

The Federation of Malaysian Manufacturing highlighted that no prosecution or penalties will be imposed for late registration, delayed filing, or errors if businesses show they are taking reasonable steps to comply by this date.

This grace period helps businesses get their affairs in order, but it doesn’t mean the tax isn’t effective from July 1st or that it doesn’t apply to taxable services from that date.

There’s also a mention of a 12-month exemption for existing non-reviewable contracts.

This means that if a business signed a contract before July 1, 2025, which locked in pricing and terms without the possibility of review (hence, ‘non-reviewable’), it may be exempt from applying SST on that contract for one year. This primarily affects businesses with those specific types of pre-existing agreements, allowing them a transition period.

Change can feel like trying to hit a moving target, but getting informed is the first step! For the most accurate and official guidance, the Royal Malaysian Customs Department (JKDM) website (https://mysst.customs.gov.my/) and its publications, such as the “Guide on Construction Work Services¹⁷” and “Guide on Rental or Leasing Services¹⁸,” are the primary sources.

They even provide contact numbers for inquiries. Consulting with a tax professional or legal advisor can also help you navigate how these specific rules apply to your unique property or business situation.

Embrace the change, get informed, and don’t hesitate to ask the right questions. It’s all about making wise decisions in the evolving landscape of real estate in Malaysia.

So, while residential homes themselves remain shielded from direct SST on construction and rental, the expanded tax does add complexity, especially for mixed developments and commercial rentals.

Industry players face new costs and adjustments, which could subtly ripple through the broader market. Understanding these nuances and staying informed is the best way to navigate Malaysia’s property landscape confidently.

8. Frequently Asked Questions (FAQs)

Do you have further questions about the SST’s impact on your specific property or business situation? Don’t go it alone! Connect with us to help you make the best move in Malaysia’s evolving real estate market.

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3. The Trump Real Estate Empire: Inside His Iconic Property Portfolio

Reference and Citation

1. Emir Zainul. (2025, June 9). Expanded SST to kick in on July 1 with 5%-10% sales tax on selected, non-essential goods, says MOF. The Edge Malaysia. Retrieved from
   https://theedgemalaysia.com/node/758356 ↩︎
2. Free Malaysia Today. (2025, June 9). What’s affected by the expanded SST. Retrieved from
   https://www.freemalaysiatoday.com/category/nation/2025/06/09/whats-affected-by-the-expanded-sst ↩︎
3. MOHD FARHAAN SHAH. (2025, June 15). Residential properties are exempt from SST, says minister. The Star. Retrieved from
   https://www.thestar.com.my/news/nation/2025/06/15/residential-properties-are-exempt-from-sst-says-minister ↩︎
4. Federation of Malaysian Manufacturing. (2025, July 1). Expansion of Sales and Service Tax (SST) Scope: Effective July 1, 2025. Retrieved from
   https://www.fmm.org.my/Announcements-@-Expansion_of_Sales_and_Service_Tax_(SST)_Scope-;_Effective_July_1,_2025.aspx ↩︎
5. Kaur, S. (2025, June 13). REHDA: 6pct SST to push up home prices, slow market expected. NST. Retrieved from
   https://www.nst.com.my/property/2025/06/1229859/rehda-6pct-sst-push-home-prices-slow-market-expected ↩︎
6. Hazim, A. (2025, June 13). Developers warn 6% SST on construction services could raise home prices. The Edge Malaysia. Retrieved from
   https://theedgemalaysia.com/node/758886 ↩︎
7. Tan, A. (2025, June 19). Works minister says SST expansion will have minimal impact on house prices. EdgeProp. Retrieved from
   https://www.edgeprop.my/content/1912858/works-minister-says-sst-expansion-will-have-minimal-impact-house-prices ↩︎
8. BDO. (2025, June 11). What’s New: Sales Tax and Service Tax. BDO. Retrieved from
   https://www.bdo.my/getmedia/e257a151-1a41-4554-ac72-c4071c9a2d94/BDO-SST-Expansion-(FA).pdf?ext=.pdf ↩︎
9. L & Co. (2025, June 17). 2025 Malaysia SST Guide for Leasing & Rental Services. L & Co.. Retrieved from
   https://landco.my/information-sharing/rental-sst/#1750151607617-bb0dc530-f165 ↩︎
10. KTP & Company PLT. (2025, June 10). (TAX UPDATE) What is the Expanded SST?. KTP & Company PLT. Retrieved from
    https://www.ktp.com.my/blog/expanded-sst-malaysia/10june2025 ↩︎
11. Zakri, J. (2025, June 17). REITs may see tougher second half as new tax pressures tenants, landlords — CIMB Securities. The Edge Malaysia. Retrieved from
    https://theedgemalaysia.com/node/759258 ↩︎
12. Free Malaysia Today. (2025, June 10). Builders’ body urges govt to reconsider SST on construction sector. Free Malaysia Today. Retrieved from
    https://www.freemalaysiatoday.com/category/nation/2025/06/10/builders-body-urges-govt-to-reconsider-sst-on-construction-sector ↩︎
13. The Star. (2025, June 12). Developers’ operational costs expected to rise. The Star. Retrieved from
    https://www.thestar.com.my/business/business-news/2025/06/12/developers-operational-costs-expected-to-rise ↩︎
14. Ikkram, I. (2025, 2025, June 11). SST expansion likely to weigh on property developers, not contractors, says Maybank IB. The Edge Malaysia. Retrieved from
    https://theedgemalaysia.com/node/758595 ↩︎
15. Estate Agent Power. (2025, June 18). Malaysia’s New 6% SST on Construction: What It Means for the Property Market. Estate Agent Power. Retrieved from
    https://estateagentpower.com/blogs/news/malaysias-new-6-sst-on-construction-what-it-means-for-the-property-market ↩︎
16. Bernama. (2025, June 12). Industrial demand to ease SST impact on property sector: RHB. NST. Retrieved from
    https://www.nst.com.my/property/2025/06/1229527/industrial-demand-ease-sst-impact-property-sector-rhb ↩︎
17. Royal Malaysian Customs Department, Sales & Service Tax Division. (2025, June 9). GUIDE ON: CONSTRUCTION WORK SERVICES. Putrajaya, Malaysia: Author. Retrieved from
    https://mysst.customs.gov.my/assets/document/Industry%20Guides/GI/1.%20GUIDE%20ON%20CONSTRUCTION%20WORK%20SERVICES.pdf ↩︎
18. Royal Malaysian Customs Department, Sales & Service Tax Division. (2025, June 9). GUIDE ON: RENTAL OR LEASING SERVICES. Putrajaya, Malaysia: Author. Retrieved from
    https://mysst.customs.gov.my/assets/document/Industry%20Guides/GI/5.%20GUIDE%20ON%20RENTAL%20OR%20LEASING%20SERVICES.pdf ↩︎

The post How Expanded SST Impact Real Estate in Malaysia? appeared first on IQI Blog.

Juwai IQI warned that the 9 per cent loss in newly planned residential supply and the 47 per cent drop in completed housing may soon lead to a price floor for residential properties in Malaysia.

The international real estate technology group said the property sector will reduce supply enough to limit future price declines.

“As agents, we still see sufficient activity and buyer demand to keep us busy. We have more concern about supply. The pipeline of new supply is shrinking,” head of bumiputera segment Muhazrol Muhamad said.

“Prices last quarter fell by 2.2% but we believe the shrinking pipeline will put a floor under future price falls.”

He said prices drop when there are more properties than buyers, and developers are shifting the equation in favour of supply by reducing the flow of new properties onto the market, noting that inflation is probably the number one factor behind developers deciding not to launch new projects.

Read more:-

English: New Straits Times, Bernama, The Malaysian Insight, The Vibes.com, The Sun Daily

Malay: Dagang News

Planning on investing in property? Our team of real estate professionals are ready to help you with your investment, local or international! Leave your details below and a property professional will get in touch with you shortly!

The post Juwai IQI: Residential homes may hit floor price on tightening supply appeared first on IQI Blog.

Planning for a property investment can be a lengthy process, but it can provide substantial returns. With a well-thought-out plan and strategy, investing in property can be tremendously lucrative. 

If you plan to invest in property, specifically residential property, read on to learn more!

What Is A Residential Property Investment?

Residential investments are investments into properties that have Residential land titles. This includes condominiums, terrace houses, apartments and other Residential-titled properties. 

Some commercial-titled properties are also considered residential-titled under the protection of the Housing Development Act (HDA), such as SoHo (small office home office) developments – which are a popular form of investment due to its lower entry price point.

The location of the property can be a huge determining factor in the ROI, so it’s important to do your research beforehand in order to maximize returns in resale value or collected rental. Having property in a ‘preferred’ location can positively affect your returns.

Other Types of Property Investment in Malaysia

Property investment is not limited to residential property. Some other types of property investments in Malaysia include:

• Commercial

Commercial property investments are investments into commercial-titled properties, usually rented out for business use. 

Some of the properties include retail lots, shop lots, SoFos (small office flexible office), SoVos (small office versatile office), SoLos (small office lease office) and SoSos (small office smart office). 

Commercial properties can be resold or leased unfurnished – unlike residential properties – and utility and management costs are usually absorbed by the tenant. 

However, the ROI for commercial investments are dependent on factors such as public transportation networks, the surrounding township occupancy and commercial occupancy rates. 

They also have a higher upfront capital, with a typical financing margin of less than 70%.

• Retail

Retail properties are properties that are located in retail storefronts and malls. These investments are similar to commercial investments, but using different mechanics and in different prime locations. Being a combination of property and business investment, the landlord of these properties receives a part of the profits alongside its basic rental returns.

• Industrial

Industrial properties are properties that have long term agreements such as industrial storage, warehouses and distribution centres. Investment in these properties comes with a significant fee and service revenue, which can generate profitable income from resale and rentals, increasing the ROI for the property owner. 

Despite its lucrative nature, the upfront capital cost can be costly, and it is considered more risky since it is a very niche market, requiring professional management and maintenance.

• Real Estate Investment Trusts (REITs)

REITs are a new concept in property investments where investors purchase shares of a corporation that owns the properties and distributes the income as dividends. This concept leverages affordability and ease of entry.

Keep in mind that you do not own the property when it comes to REITs. You also do not have any power to determine how the property is managed. However, the perk is that if you would like to ‘own’ your preferred property industry such as hotels, you can invest in hotel REITs. 

What type of property is best for investment?

The best type of property is definitely property that brings in the most returns on investment. These returns are measured by rental yield and capital growth, which highly depend on surrounding developments and market conditions. Properties with a low entry point usually offer the highest rental yield returns. 

Properties that are walking distance to public transportation points, have nearby amenities and provide available jobs (such as business centres and universities) can offer much potential for capital appreciation as well.

Is it worth investing in property in Malaysia?

Despite the high start-up cost, investing in property is a stable option and has the opportunity to not only balance, but surpass the initial investment amount! 

Rentals can provide a steady monthly income, and considering nearby infrastructure upgrades, property values can increase over time. 

However, it is important to note that the location of the property plays an important role in the returns of the property. ‘Preferred’ areas tend to bring in more rental, so if your property is not in a high-demand area, the rental may not be able to cover the interest and loan installments.

Proper planning should be executed before investing in property. Typically, owners are responsible for maintenance, sewerage, assessment and sinking fees, which can be a loss for the investor if the fees are higher than the installment and maintenance amount.

How do you make money from property investments?

There are several ways you can earn from property investments:

• Buy-to-rent

One of the ways you can invest in property is by purchasing and renting out the property (buy-to-rent). The type of property you are purchasing, the location of the property and your potential tenants can determine your return of investment (ROI). 

High demand areas can help bring in higher rental income, and if the property is nearby, it can be handy in case any issues surface. Doing background checks on your tenants is also highly recommended to ensure that agreements go smoothly, you receive your rent in a timely manner and know that your property is in good hands.

To maximize your net profit, you can calculate your rental yield by factoring in the fees and costs involved so that you can get a clear idea of what your ROI looks like.

• Short-term rentals

Another approach to profiting from property investments is through short-term rentals, by renting out the property typically for a few nights or weeks. Although it is less stable than long-term rentals, short-term rentals can provide significantly higher returns on a day-to-day basis compared to long-term rentals.

It is important to keep in mind that short-term rentals are different in nature compared to long-term rentals, and it comes with its own set of challenges. Short-term rentals require regular marketing efforts and more maintenance due to its high turnover.

• Flipping / Buy-to-sell

With the right strategy and proper planning, investing in property by purchasing to resell (alternatively known as subsale) can bring in satisfactory returns. 

The demand for sub-sale properties exists because of factors such as location, immediate ownership, high occupancy rates and mature townships with great public amenities. Subsale properties provide a certain degree of confidence to consumers compared to properties that are still in development.

However, investing using this method requires a well thought-out strategy. It can be a time-consuming and costly process, from sourcing the property, financing and maintaining the property to finding the right buyers. Getting assistance from professionals can considerably encourage the success of the investment.

Investing in property can be a great opportunity to earn additional income. Now that you have an idea of how property investment works, we hope you have gained some confidence to make that move and start investing!

IQI is a real estate firm with over 30,000 agents in 21 countries across the globe. Join us now and become part of one of the world’s leading property companies!

The post A Quick Guide To Residential Property Investment appeared first on IQI Blog.

Residential property prices are expected to surge in 2021 after stalling this year due to the COVID-19 pandemic, according to a nationwide study by real estate sales and media company Juwai IQI.

In its Q1 2020 Property Index and Survey for Malaysia, Juwai IQI predicted that residential property prices would stagnate in 2020 with an increase of only 1.1%.

“The industry is optimistic, however, about a post-pandemic recovery and expects residential prices to rise by 8.6% by 2021.

“Amid all the uncertainty, property is viewed as a relatively safe investment that can provide cash flow.”

He added that Bank Negara Malaysia’s six-month moratorium on interest and principal payments for loans had provided relief to property owners besides easing the pressure on the real estate market.

The survey, which was conducted among more than 340 real estate agents from Feb 7 to March 19, also revealed that rental rates are expected to rise by an average of 1.7% through the end of 2020.

“The findings showed that Sarawak has the highest forecast rental growth at 5.4% in 2020. Penang has the most negative forecast, with rental rates there expected to fall by 5.8% in 2020.

“But looking forward two years, agents are more confident about rental rates. Nationwide, agents expect rental rates to climb by 7.1% by January 2022,” Ansari said.

He added that property would likely remain attractive to foreign buyers due to the country’s strategic location.

“Its close proximity to countries such as Japan, China, Hong Kong and Singapore, which are the world’s largest cross-border property buyers, makes it even more appealing.

“For investors and first-time home buyers, now is definitely a good time to consider getting into the market, as there are attractive discounts offered by developers.”

About 61% of real estate agents who participated in the research expected first-time local buyers to make more property transactions in 2020 than in 2019. Meanwhile, 55% of agents expected foreign buyers to conduct more transactions.

The survey also revealed possible consumer changes in property buying, with greater use of online tools such as virtual reality, 3D rendering and live-streaming, to facilitate marketing, research, and purchasing of real estate due to COVID-19.

Source: MSN News

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