The Malaysian property market has demonstrated remarkable resilience, achieving its best performance in a decade in 2024. Transaction volume increased by 5.4% year-on-year, totaling 420,525 transactions, while total transaction value surged by 18% to reach RM232.3 billion. The Finance Minister II attributed this growth to government initiatives aimed at revitalizing industry activities, highlighting the property market's role as a significant indicator of economic health, evidenced by rising occupancy rates.
The residential segment remains a driving force in the market, with 75,784 units launched during the year. Importantly, the sales rate in this sector recorded at 37.3%, reflecting a robust demand despite previous concerns. The unsold completed residential units saw a decline, with figures dropping to 23,149, valued at RM13.94 billion. Furthermore, the overhang in serviced apartments was reduced to 19,564 units, valued at RM15.7 billion. This positive trend was supported by favorable government policies and improved buyer sentiment.
The residential sector shows strong demand with 75,784 units launched and a sales rate of 37.3%, highlighting positive market sentiment.
Despite these favorable metrics, affordability challenges linger, as indicated by the Malaysian House Price Index, which stood at 225.6 points in 2024. The average property price recorded was RM486,678 per unit, with the House Price Index experiencing a moderate growth of 3.3% annually. Stagnating incomes and rising living costs have led to a cautious outlook among potential buyers, complicating the market's recovery.
Market confidence is characterized by cautious optimism, with total unsold completed and under-construction units increasing by 22.3% to reach 115,674 units. This highlights the importance of monitoring market absorption to prevent oversupply issues. Moreover, the government's commitment to improving living conditions reflects a broader strategy to stimulate housing demand and accessibility.
Looking ahead, the market is anticipated to continue its upward trajectory into 2025, bolstered by strategic infrastructure projects and government measures introduced in Budget 2025, which aim to stimulate demand and promote homeownership. In summary, ongoing support through incentives and policies is vital for sustaining market momentum and confidence.
Conclusion
In 2024, Malaysia's property market has not just soared; it has rocketed into a stratosphere of unprecedented success, defying gravity and expectations alike. With transaction volumes and values reaching astronomical heights, the sector is an unstoppable juggernaut, fueled by visionary government initiatives and an insatiable buyer appetite. Yet, amidst this dazzling ascent, challenges loom like storm clouds on the horizon. As Malaysia navigates this thrilling landscape, the future promises both breathtaking opportunities and formidable hurdles for aspiring homeowners and investors alike.