KUALA LUMPUR: Despite challenges primarily on the external front, the country's property market will continue to strive and see more positive outcomes in 2024, given the numerous ongoing initiatives scheduled for the year.
The Malaysian Institute of Estate Agents (MIEA) president, Tan Kian Aun, said that although there were some setbacks during the pandemic period, the good news is that the industry is slowly recovering.
Tan applauded the government for improving the investment climate in Malaysia and for taking proactive steps to lower interest rates, with the overnight policy rate currently at 3.0 per cent.
There is also a more focused approach that is in demand, such as addressing issues like sustainable living, green, and renewable energy elements, he said.
"We don't expect the government to do something drastic to change the economic landscape but rather to take a step-by-step approach because it may affect inflation, the cost of living, and the income gap of the people," he said.
Tan said that the country has not seen a sharp decline or other unfavourable consequences, like foreclosures, which would have hurt a lot of people.
"We can see it in terms of stable pricing and the revival of some abandoned projects, which are also good signs. This shows that people are interested and confident in rebuilding the property sector, or else no one will want to revive the projects," he said.
According to the Housing and Local Government Ministry, eight abandoned private housing projects with a gross development value (GDV) of RM574.08 million have been revived since the Task Force on Sick and Abandoned Private Housing Projects (TFST) was established.
As of September 2023, 301 projects, comprising 38,752 housing units, with a GDV of RM28.88 billion, had been revived.
During the same time period, the ministry also revitalised 266 abandoned private housing projects, involving 46,229 buyers and 67,773 housing units.
Tan said that Malaysia is still one of the best places to invest.
According to him, noteworthy national projects like the Pan Borneo Highway in Sabah and Sarawak, the Johor Rapid Transit Link (RTS) project, and significant industrial projects in the north are what draw in investors.
He said that the New Industrial Master Plan (NIMP) 2030 and other efforts by the federal and state governments to stimulate the market, particularly for industrial and manufacturing, have resulted in growth not only in the Klang Valley but across the country.
The Penang LRT, Sarawak's autonomous rapid transit (ART), the emphasis on tourism, green and renewable energy, and the low-carbon initiatives in Sabah and Sarawak are some other growth-promoting catalysts, he said.
"All these are high-value industries and will boost the economy and the property market in this region.
"The government's fiscal policy, such as the full exemption on stamp duty for first-time housebuyers (for RM500,000 and below) until the end of 2025, will also encourage home ownership in the country," said Tan.
Furthermore, he said the allocation for the Housing Credit Guarantee Scheme, which was doubled to RM10 billion under Budget 2024, is anticipated to assist 40,000 borrowers.
This is followed by the Malaysia My Second Home (MM2H) Visa Liberalisation Plan, demonstrating the government's commitment to stimulating the market, he added.