HENRY BUTCHER MALAYSIA RECEIVES AWARD, P2 PLUS
Observations of NAPIC’s Property Market Report 2023 p3
More New Launches in Klang Valley in 2023 p6 Cheras South p8 Awang Damit Ahmad: A Fervent & Determined Artist p10
APRIL - JUNE 2024
An Optimistic Property Market in 2024
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APIC’s annual property market report was released recently and the report indicated that the Malaysian property market in 2023 has continued its recovery from the slowdown experienced during the pandemic hit period of 2020-2021, albeit at a slower pace. The overall volume of residential transactions in the country recorded a marginal improvement of just 3.0% in terms of volume and 7.0% in terms of value of transactions in 2023 compared to 2022. This indicates that the property market appears to have normalised and although still growing positively, no longer accelerates at the pace experienced when recovering from the low base of 2020-2021.
KDN PP18893/11/2015(034373)
Property developers are now more optimistic of the market though at the same time are cautiously observing and monitoring geopolitical developments and economic trends within the country as well as externally which may have an impact on the
Insuring Intangible Assets and Valuation p12
country’s economic wellbeing and in turn, the property market. We also noted REHDA’s announcement that in its annual survey, their members have expressed confidence that the housing market will be more active in the second half of 2024 and that they will likely increase the selling prices of their products in new launches for this year as they are not able to continue absorbing the increase in building materials and construction costs. Arising from this, it appears that there is a strong likelihood of house prices going up from the second half of the year onwards, unless the property market turns sluggish again due to some unforeseen adverse global or national developments. Property developers will nevertheless have to strike a balance between improving their margins and generating a healthy cash flow as higher prices may affect the saleability of their projects and thus affect sales take-up rates.
Optimism in the horizon can also be attributed to global brand names making their way into Malaysia by way of FDI.
Tang Chee Meng
We observed that major developers have been actively sourcing for and adding on to their landbanks in anticipation of a full market recovery. The increase in interest in land acquisitions have also unsurprisingly, led to landowners holding on for higher prices for their land or even increasing their asking prices. We noted especially in Johor where there is a renewed optimism amidst a strong performance of the residential market in 2023, landowners have raised their price expectations and have become less willing to negotiate on the price even though there may not have been any real improvement in development potential of their land as there are no plans of new infrastructural enhancement of the area. If Bank Negara Malaysia continues to maintain the OPR at the current rate of 3.0% for the rest of the year, which most economists expect to be the case, house buyers and potential house buyers will not be burdened by higher interest rates and this