Domestic property prices are expected to increase in the second half of next years on the back of the growth in Malaysia’s socio-economic standing, said Savills (Malaysia) Sdn Bhd, a global property consultancy firm.
“There is still an issue of oversupply, especially within the domestic property market. The uncertainties brought on by trade tensions between the United States and China also play a role for investors’ shying away from Malaysia now,” said Savills’ chief executive officer Datuk Christopher Boyd
“On top of that, for the first half of the year, most people adopted a wait-and-see approach due to the 14th General Election. Now is the perfect time to buy because property prices have turned quite competitive.”
Once these factors stabilise, real estate prices will rise again in the second half of 2019, Boyd added.
“The reintroduction of the Sales and Services Tax in September will also play a part in the price increase as raw materials will again be taxed and, therefore, will become more expensive.”
According to Savills data, housing loans has risen for the first two months of this year, at RM33 billion compared with RM32 billion during the same period in the year before.
“Approved housing loan applications for January and February were at RM14 billion, from RM13 billion for the first two months of 2017,” he added.
Malaysia saw its total housing loan applications increase by 15.6% to RM239.6 billion last year.
Of the total, 42.2%, or RM101.5 billion, was approved.