A NEW data has suggested that the residential real estate market in Malaysia is headed for a post-pandemic rally over the next 12 months.
According to the Juwai IQI Malaysia Property Survey and Index 3Q 2022 which surveyed real estate agents around Malaysia, prices and rentals are likely to increase significantly over the next 12 to 24 months.
“If they are right, then we should expect a significant increase in activity. In that scenario, people who own their own homes will benefit from the increasing values while those who rent or are seeking to buy will have to continue to raise their budgets,” opined Juwai IQI co-founder and group CEO Kashif Ansari in a media statement.
“Whether agents advise you to buy or rent is a strong indicator of their outlook for the market.”
Asked what they would advise a friend, nearly nine out of 10 of surveyed Malaysian real estate agents said they would advise a friend that it is better to buy today than to rent.
By contrast, only 11% said that they would advise a friend that it is better to rent today than to buy.
This data suggests that agents expect renters to face rate increases over the next 12 months and for home prices to correspondingly rise. Those who buy now would be spared from these pressures.
“When you look at who has the biggest opportunity here, you see that slightly more than one-third of Malaysians aged 20 to 39 are renters. That’s the highest percentage of renters of any age group,” revealed Kashif.
Delving deeper into the findings, agents believe that Malaysia’s residential prices will climb nationally by 11.8% over the next 12 months with prices ending up 16.5% higher over the next 24 months.
“In Penang, agents predict 17% price growth in two years. Agents in Johor forecast 18.1% price growth in the same period. Kuala Lumpur and Selangor agents anticipate 15.9% price growth while agents in Sabah expect price growth of 14.7% over the next two years,” noted Kashif.
“We have been doing the Juwai IQI Index and Survey since 2019 and these numbers make up the most robust residential price growth forecast we have yet recorded.”
According to Kashif, the forecast has changed significantly since 3Q 2021 when agents anticipated a 5% decline in residential prices with events proving they were not far off.
“One reason that agents are so bullish on the real estate market is that they are overwhelmingly optimistic about the economy,” he pointed out. “About 45% of agents believe the economy will be somewhat stronger or much stronger during the next six months.” – July 19, 2022
