Bank Negara: Risks contained for non-residential property sector despite challenges
Risks in the non-residential property (NRP) sector remained contained in the second half of 2024 (2H 2024) despite continued challenges
In a statement today, the property consultancy said significant developments in the Klang Valley, Johor, Penang and East Malaysia are driving the market forward, with strategic investments and evolving demands fuelling continued optimism.
Its senior executive director Judy Ong said Malaysia’s property market is underpinned by sustained demand for housing, shifts in global supply chains fuelling demand for industrial spaces, rising data centre investments, and strong recovery in the hospitality segment.
"Coupled with the rising demand for sustainable and green-certified developments, the industry is poised for a progressive and dynamic year ahead,” she said.
Meanwhile, Knight Frank Malaysia executive director of research and consultancy Amy Wong reckoned that Malaysia’s industrial sector is enjoying rapid growth while the hospitality industry is recovering strongly.
"There are plenty of opportunities for investors and stakeholders. A strong focus on sustainability will be crucial for future strategic investments,” Wong said.
Its group managing director Keith Ooi added that Malaysia’s property market has consistently adapted to challenges, paving the way for sustainable growth.
"With our emphasis on environmental, social, and governance, innovation, and infrastructure development, the market will continue to thrive, reinforcing Malaysia’s position as a regional leader,” he noted.
Commenting on 2024’s performance, the company said the market demonstrated resilience and steady growth across various sectors driven by strategic investments, infrastructure upgrades, and evolving market demands.
It said the industrial sector led the way with technology advancements and sustainability, while the office and retail markets continued their recovery, supported by shifting occupier preferences and consumer spending.
"Meanwhile, the hospitality sector saw a boost in tourist arrivals, and high-end housing maintaining stable demand, aided by government initiatives and infrastructure improvements,” it added.
