20 Taman Desa Seputeh homeowners rejoice over freehold titles
Twenty residents from Taman Desa Seputeh, Kuala Lumpur, are rejoicing after successfully converting the leasehold titles
Zerin Properties chief executive officer Previn Singhe said the growth will be underpinned by several factors, namely the country’s positive economic recovery, stable monetary policy, various government initiatives and infrastructure developments.
“Malaysia’s gross domestic product is forecast to grow by approximately 4% to 5% in 2024, buoyed by stable domestic demand, strong foreign direct investments, especially in the manufacturing and data centre segments, and strong export performance.
“This economic stability is expected to benefit the residential market,” he told StarBiz.
Additionally, with Bank Negara likely to maintain the overnight policy rate at 3%, Previn said mortgage affordability will remain favourable.
“This is anticipated to encourage both first-time homebuyers and those looking to upgrade their properties.”
Moreover, Previn noted that the De Rantau programme, aimed at attracting digital nomads, along with the enhanced Malaysia My Second Home programme and the Premium Visa programme, are expected to draw more foreign buyers and expatriates.
“This will particularly benefit the luxury residential sector.”
Separately, Previn said the significant, ongoing infrastructure projects are expected to bolster the Klang Valley property market.
“The upcoming completion of the Light Rail Transit Line 3 will enhance connectivity, while the Mass Rapid Transit Line 3 is set to further improve public transport options, making properties in well-connected areas even more attractive to buyers.
According to data released by the National Property Information Centre earlier this month, property transaction value soared to RM105.65bil in the first half of 2024, marking a 23.8% year-on-year increase – the highest in five years.
This compares to the RM85.37bil recorded in the same period last year.
In terms of transaction volume, a total of 198,806 properties were sold in the first half of 2024, representing an 8% increase from 184,140 units in the previous corresponding period.
The residential segment’s transaction value rose 10.4% to RM49.43bil in the first half of 2024.
In terms of transaction volume, the residential segment increased 6.1% to 121,964 units during the period under review.
Previn said demand is projected to remain strong for mid-range properties priced between RM500,000 and RM1mil, especially in urban areas.
“High-rise units with integrated amenities will continue to appeal to younger buyers and expatriates.
“Meanwhile, the luxury market, encompassing both landed and high-rise properties, will see sustained interest from high-net-worth individuals, particularly in sought-after locations like Damansara Heights, Mont Kiara and Bangsar.”
Meanwhile, former investment banker and seasoned investor Ian Yoong said the outlook for the property sector over the next 12 months is bullish.
“All the indications point to a period of significant growth.
“Global and domestic interest rates are expected to decline over the next 12 months.
“Major infrastructure projects are nearing completion. The proliferation of data centres is a significant growth driver.”
Yoong added that the pick-up in foreign direct investments will boost economic growth.
“Anecdotal evidence suggests that there has been a surge in permanent residents from North Asia in the Klang Valley and Penang. The prices of Malaysian residential properties are significantly lower than those in neighbouring countries Thailand and Singapore.
“All these factors will be catalysts for a multi-year upcycle in property stocks.”
Citing Bank Negara’s July 2024 statistics, Yoong noted that loan applications for residential and non-residential properties surged 16% year-on-year and and 38% year-on-year, respectively.
He added that the strengthening ringgit will boost the Malaysian property market, as foreign investors flock to buy properties at near ground floor prices.
“Confidence is returning to our property market on the back of a strengthening ringgit, a highly capable and efficient unity government and a robust economy.”
