The Malaysian property market is witnessing a significant resurgence, as confirmed by Housing and Local Government Minister Nga Kor Ming. With a robust economic outlook and an influx of expatriates, the sector is poised for further improvement this year.
Minister Nga Kor Ming highlighted the pivotal role of the increasing expatriate population in bolstering the property market. "The immigration department statistics for 2023 showed that it had issued 154,155 working permits to expatriates, which is one of the highest numbers in decades," he noted during his speech at the Real Estate and Housing Developers Association of Malaysia (Rehda) Institute Regional Housing Conference. This marks a nearly 50% increase from the previous year, signaling a strong recovery trajectory for the market.
Economic Growth and Property Market Resilience
The minister reassured stakeholders that the Malaysian property market is not experiencing a bubble, thus dispelling fears of a potential burst. "We have made slow but steady growth in the property market. This signifies the improved conditions of the market locally," he added. This statement is supported by the rebound in property stocks on Bursa Malaysia, with some of the top-performing counters witnessing up to a 700% growth in share price over the last year.
Strategic Measures to Sustain Growth
To maintain this upward trend, Minister Nga emphasized the need for a structured business environment that supports a vibrant and healthy market. "The economic multiplier in the business and supply chain is high. However, the business must be structured to ensure it remains vibrant and healthy at the same time. This gives confidence to the purchasers and protects their interests as well," he stated.
Looking ahead, the next three years are expected to see further recovery and growth in the sector. The minister's confidence in attracting more international and domestic players to the market underscores the government's commitment to fostering a conducive environment for property development and investment.
This resurgence in the property market, driven by strategic governmental actions and economic improvements, presents a robust outlook for Malaysia's real estate sector, making it an attractive arena for both local and international investors.
