The measured growth trajectory observed in Malaysia's property market in 2023 is expected to continue this year. This is primarily attributed to buyers maintaining a cautious approach toward property acquisitions, even though there has been an overall improvement in sentiment.
“We expect the market to continue the momentum that was generated in 2022 at a more normalised pace, but still, Malaysia is probably going to have a good year for the property market,” said Rahim & Co Research Sdn Bhd research director Sulaiman Saheh during the Rahim & Co property market review recently.
The company released its annual Property Market Review 2023/2024 analysing property market trends across the country. It detailed moderate growth in the 2023 property sector, with mixed performance between states and the commercial, residential and industrial sectors.
The first nine months in 2023 recorded one of the highest numbers of transactions since the 2011-2012 peak. The commercial real estate sector stood out with 22.3% and 24.8% growth in volume and value respectively. In particular, the performance of the property market in Johor 2023 is commendable, with the highest recorded growth in terms of percentage in volume of transactions, Sulaiman said.
A more cautious approach to new launches, with smaller-scale phases and a priority on ongoing projects over newer ones, improved the nation's overhang numbers from 55,482 units in 3Q2022 to 49,364 in 3Q2023.
On the commercial front, both the retail and office sectors saw a slight improvement in occupancy rates, but the incoming supply of retail and office units in the Klang Valley is expected to continue to put pressure on the market.