Market Trends of Malaysia Residential Real Estate Industry
This section covers the major market trends shaping the Malaysia Residential Real Estate Market according to our research experts:
Increase in Urbanization Boosting Demand for Residential Real Estate
Malaysia is currently one of the most urbanized countries in East Asia and one of the most rapidly urbanized regions worldwide. People from rural areas are migrating to urban areas due to the economy and employment shifting from agriculture to industry and services.
The population of Malaysia is growing rapidly, giving rise to the demand for more housing, commercial buildings, social spaces, and infrastructure. Thus, the Malaysian government is dedicated to providing appropriate, high-quality, and affordable housing.
The government is dedicated to providing inexpensive housing for the younger generation and concentrating on building affordable housing in small towns and suburbs to boost the likelihood of people purchasing a property.
This statistic shows the growing urbanization in Malaysia from 2017 to 2021. Urbanization means the share of the urban population in the total population of a country. In 2021, 77.7% of Malaysia's total population lived in urban areas and cities.
Government Initiatives Driving the Market
Malaysia's property market is expected to rebound in 2022 as more demand will likely be skewed toward affordable housing. The 12th Malaysia Plan (12MP) will have nine areas of focus covering the economy, poverty, and income gaps.
Malaysian government policies and regulations have led to the increase in the development of new project units in the country. Several workers and on-site development projects and construction activities have been involved over time, leading to massive ongoing developments across the country.
The government plans to build 500,000 affordable homes for income earners in the bottom 40% (B40) and middle 40% (M40) groups, along with MYR 2.25 billion (USD 52.8 Million) allocations during the 12 MP period to build and repair 85,500 housing units for the poor under the Program Bantuan Rumah.
The Malaysian People's Housing Program (PPR) will be given a new direction by the National Affordable Housing Council (MPMMN), which may include additional components aimed at attaining the "Liveable Malaysia" agenda.
New developments in established and popular localities (which continue to command reasonable prices) like Bangsar, Mont Kiara, and Sri Hartamas are helping revive property interest in Kuala Lumpur, while government-led measures to provide more affordable housing options are also making an impact.
