2021 has come to an end and although it has been a challenging year for many, we can’t help but look at the possibilities the new year will bring. The economy will definitely be under a watchful eye as it will influence numerous markets and segments, such as real estate.
Truth be told, there is no way of knowing how the property market will be in 2022. However with the country slowly back on the mend following the pandemic, there is hope on the horizon for a better year ahead. The question remains though, what will the property market be like for Malaysia in the coming year?
Well, since we do not have a crystal ball, the next best thing is naturally data. Based on a recent report by REHDA (Real Estate & Housing Developers’ Association Malaysia), the Malaysian property market is earmarked to bounce back within two years.
Based on findings of the Rehda Property Industry Survey 2021, the market sentiment is leaning towards a full recovery in 2023 following the effects of the Covid-19 health crisis. As the nation moves from a pandemic to endemic classification, this could help create a more favourable atmosphere for the local real estate market in 2022.
Should I Buy Or Should I Sell?
It is still largely a buyers’ market at this point with the market still relatively soft. However there are already signs of prices stabilising, which could hint at an upswing in a year or two. In a recent report by the NST, the asking prices for Malaysian properties saw an increase of 0.92% in Q3 of 2021. This could be an early indicator of a market recovery for the property sector.
In the past year, Selangor registered the most property transactions in 2021 followed by hotspots, Johor, Penang, and Kuala Lumpur. In terms of property types, terrace houses are the top choice for buyers followed by condominiums.
These positive signs are due to a number of factors such as the end of the movement control along with Home Ownership Campaign (HOC) incentives as well as the current low Overnight Policy Rate (OPR) of 1.75 %. For those who are looking to liquidate their properties, and are in no rush to sell just yet, the smart money is to hold on for the time being.
With the property market hinting to a return to form, owners could be in a prime position to get better returns on their properties in a year or two, so it’s prudent to wait. For buyers though, all signs dictate that its conducive to get into the market by early next year.
With prices still below market and highly favourable, 2022 could prove to be the ideal time to finally put down on a property. Based on the current market climate, with properties still being sold at lower prices along with the prevailing low interest rates, it is a highly-conducive market for buyers and investors.
As the consumer market confidence returns, this uptrend could spill over to the property segment, allowing for prices to rise and appreciate. The key to achieving successful capital growth is to always keep a lookout on the market to uncover good deals on real estate as well as the current developing trends in the segment.
With returning consumer confidence and a more resilient economy following the effects of Covid-19, there could be an avenue for both sellers and buyers to maximise their opportunities in a recovering real estate market.