Real estate market recovery expected in 2022

PETALING JAYA: Real estate prices resumed an uptrend in the third quarter of 21 due to improving sentiment associated with higher vaccination rates, reopening of business and an environment less restricted for consumers, according to PropertyGuru Malaysia’s Property Market Outlook Report 2022.

PropertyGuru Malaysia Country Director Sheldon Fernandez said a rebound in the real estate sector is expected after a more substantial national economic recovery.

“We are likely to see gradual improvements in the market environment in the first half of 2022 (H1’22), before it starts to accelerate in S2’22,” he said.

Research conducted by PropertyGuru DataSense, the data analytics and solutions arm of PropertyGuru, revealed that real estate activity continues to occur in Malaysia despite a very challenging environment, albeit at a very low volume.

He said that while the total number of purchases fell sharply during the periods S2’20 to S1’21, the overall median price of traded properties rose 8.5%, the largest increase recorded since S1’16. . The fact that median prices continued to rise as the volume of transactions fell sharply indicates that buyers who purchased a property during this period had a solid financial base and an appetite for higher priced properties.

“A total of 5,254 transactions were made in Selangor in H1’21, with a median price of RM457,000. Meanwhile, Kuala Lumpur recorded 939 transactions, with a median price of RM550,000. Johor’s median price for the first half of 21 is RM 380,000 after a total of 2,952 transactions. Penang had a median price of RM340,000, with 1,457 transactions completed at the same time.

“Globally, landed units accounted for 60.1% of transactions in Klang Valley, 81.6% in Johor and 49% in Penang. Townhouses were the most popular type, accounting for 47.1 of transactions in Klang Valley, 69.8 in Johor and 34.4% in Penang. While apartments accounted for 31% of transactions in Penang.

“The combination of low interest rates, depressed house prices and an environment rich in incentives has provided an opportune time for buyers with the right means to enter the market. Even at the height of the restrictions, their ability to influence purchasing decisions has been aided by greater adoption of digital transformation by real estate companies, which now enables an end-to-end purchasing process for consumers ” , he said during the report’s virtual briefing.

PropertyGuru predicts several trends that will impact the Malaysian real estate sector in 2022, including a stabilized market to rekindle buyer interest, an improved economic environment for property seekers, progressive government policies for a changing landscape, megaprojects current (to improve the outlook) and terraces remain the best choices.

“The positive price indicators captured in S2’21 predict a more stabilized market in S1’22. As businesses begin to reopen at full capacity following the National Recovery Plan (PNR) and the removal of the Real Estate Gains Tax (RPGT) on homes sold from year six, this will help liberalize the market for investors and buyers of second homes.

“Following the announcement of the 2022 budget, the government plans to invest RM 2 billion in guarantees to banks through the Guaranteed Credit Housing Program, aimed at helping people in the odd-job economy. In addition, an additional allocation of Ringgit 1.5 billion would be spent on housing programs such as Rumah Mesra Rakyat and the maintenance of public housing units. This illustrates the start of more progressive and inclusive approaches to financing and homeownership, ”he said in a statement.

As megaprojects in the country continue to advance, PropertyGuru predicts this will generate excitement in the real estate market and add value to the residential, commercial and retail segments. This includes important infrastructure such as the deployment of Mass Rapid Transit Line 3, the East Coast Rail Link, and the Johor Baru-Singapore Rapid Transit System.

“Terraced houses remain the most sought-after property type in the country, accounting for the highest volume of properties purchased by first-time homebuyers and investors in the first half of 21, according to research from PropertyGuru DataSense. The preference has been influenced by recent limitations of Covid-19, as young professionals seek more space to balance both lifestyle and work needs, especially as working from home is now becoming an option. long term, ”he said.

Penny D. Jackson