Research Report

Real Estate Market Outlook 2020 Malaysia

Malaysia’s property market gained traction as transaction activity in 3Q 2019 went up by 5.6% to 83,186 transactions and 4.7% to RM34.7 billion respectively from the same time last year. Klang Valley (KV), which constitutes about one-quarter of Malaysia’s property market, grew by 1.3% in volume to 77,241 in 2018 but transaction value declined by 2.7% from 2017 to RM65.7 billion. 3Q 2019 saw an improvement when transaction volume expanded 7.7% (20,626 transactions) while value increased 13.7% (RM15.8 billion).

Real Estate Market Outlook 2019 Malaysia

Klang Valley’s property market displayed signs of recovery with diminished contractions in transaction volume post-2016. Residential sector will still be the main market with more strategic developments and launching anticipated moving forward. Older commercial properties would have to be proactive to hold up to the intensifying competition from newer developments. For the hotel sector, new entrance are still active despite fluctuating tourist arrivals. Last but not least, industrial sector has been picking up attention, evidenced by the line-up of industrial property or land in the significant deals concluded in 2018.

Real Estate Market Outlook 2017 Malaysia

As of 3Q2016, the property market dipped further. Transactions activity dropped 12.0% to 239,798 transactions (272,550 transactions as of 3Q2015) and 16.5% to RM95.34 billion (RM114.12 billion as of 3Q2015). Agricultural land remained as the second most active after residential properties with 52,337 deals worth RM9.41 billion. Third was the commercial sector with 17,453 transactions followed by development lands (14,255 transactions). Selanogr was the most active with 46,805 properties worth RM27.95 billion followed by Johor (29,520 deals worth RM14.78 billion). NAPIC also reported as at 3Q2016, that 57% of residential property transactions were priced below RM250,000 while 43% were transactions between RM250,001 and RM1 million.

Real Estate Market Outlook 2016 Malaysia

Malaysia’s GDP in 3Q2015 expanded 4.7% to record a real GDP of RM292 billion. Net foreign direct investment (FDI) was RM27.05 billion in the first nine month of 2015. Manufacturing attracted the highest net investments at RM11,670 million (43%), followed by mining and quarrying at RM11, 701 million (40%), primarily by the oil & gas  sector.  The overall market sentiment has generally been affected by the implementation of the Goods and Services Tax (GST) on 1st April 2015, subsidy rationalisation by the Federal Government, the drastic drop of crude oil price since end of 2014 that reduced significantly revenue collectable by the Federal Government, the continuous weakening of Malaysian Ringgit, and a certain jittery in the political situation.

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