Malaysia’s property market is making headlines in 2024, achieving a record-high transaction value of RM232.30 billion—the highest in a decade! With property volume increasing and the overhang situation improving, now may be one of the best times to invest in real estate. Whether you’re a first-time homebuyer or a seasoned investor, here’s what you need to know about the current market trends and how they can benefit you.
A Surge in Property Transactions and Values
According to the Property Market Report 2024, property transactions in Malaysia rose by 5.4% to 420,525 transactions. More impressively, the total transaction value surged by 18%, reaching an all-time high of RM232.30 billion.
The demand for new residential properties has also skyrocketed, with sales jumping by 37% to 75,784 units. This surge is largely due to increased new launches across most states, signaling strong buyer confidence and market recovery.
Overhang Properties on the Decline
The longstanding issue of unsold completed properties (overhang units) has significantly improved. The number of overhang units dropped by 10.3% to 23,149, while their total value declined by 21.2% to RM13.94 billion. This reduction suggests that buyers are snapping up properties faster, and developers are adjusting their strategies to meet market demand.
House Prices and Shopping Complex Occupancy
The Malaysian House Price Index showed a moderate rise, increasing by 3.3% to an average price of RM486,678 per unit. This steady appreciation highlights the resilience of the housing market.
Meanwhile, the occupancy rate of shopping complexes remained stable at 78.8%, reflecting steady consumer activity and confidence in the commercial sector.
Government Incentives to Boost Market Growth
The government has introduced several incentives to sustain this momentum, including:
Tax Relief on Housing Loan Interest: Buyers purchasing properties priced between RM500,000 and RM750,000 from Jan 1, 2025, to Dec 31, 2027, can enjoy tax relief, making homeownership more affordable.
Relaxation of Malaysia My Second Home (MM2H) Programme: Loosened requirements will attract more foreign property buyers, increasing demand in key locations.
Major Infrastructure Projects: Developments like the Rapid Transit System (RTS) Link in Johor, the East Coast Rail Link (ECRL), and the Pan Borneo Highway will further stimulate the property market by improving connectivity and accessibility.
What This Means for Buyers and Investors
With a booming property market and supportive government initiatives, buyers and investors should consider:
Buying Now Before Prices Rise: With demand increasing, property prices are likely to continue their upward trend. Getting in now could mean better returns in the future.
Exploring Hotspots with New Developments: Areas benefiting from infrastructure growth, such as Bukit Jalil, Puchong, and Johor Bahru, could see higher appreciation.
Taking Advantage of Tax Incentives: If you're planning to buy within the RM500k–RM750k range, now is a great time to leverage the tax relief benefits.
Conclusion
2024 has been a landmark year for Malaysia’s property market, with rising transactions, increased property values, and improved market conditions. If you’ve been considering buying a home or investing in real estate, this could be the perfect time to make your move. Stay updated on the latest trends and explore high-potential areas to maximize your investment!