The projection is based on the sector asking price indicator study on future transaction prices
By S BIRRUNTHA / Pic By MUHD AMIN NAHARUL
THE property sector in Malaysia is expected to see a gradual improvement in the first half of 2022 (1H22) backed by a rebound in market sentiment and economic recovery.
PropertyGuru country manager Sheldon Fernandez said the gradual improvement will see the property market likely to accelerate in 2H22 based on its asking price indicator study on future transaction prices.
The improved outlook is also reflected in the recent PropertyGuru Malaysia Property Asking Price Index, which found prices were back on an upward trend in the third quarter of 2021 (3Q21), indicating sentiments are improving in tandem with higher vaccination rates, the reopening of commercial activity and a less restricted environment for consumers.
“We will likely see gradual improvements in the market environment in 1H22, before it begins to pick up the pace in 2H22,” said Fernandez in PropertyGuru Malaysia’s Property Market Outlook Report 2022 briefing yesterday.
He said it is a favourable timing for home seekers who are looking to take advantage of low prices while they are on an upward trend and benefit from the prevailing low-interest rates while they last.
He said, however, they are advised to consider the stability of their personal finances and job security before making a long-term financial commitment.
“With prices trending in a positive direction in 4Q21 and sentiments gradually, but steadily improving, it is highly likely more property purchasers will want to catch the potential upswing of market prices while the financial environment remains favourable.
“This is a momentum that is expected to pick up pace and spill over into 2022,” he added.
He also emphasised the current climate is not ideal for those seeking to sell their property for a bigger profit, as sellers are facing competition from a glut of new and unoccupied properties which provide buyers with diverse options.
He said, however, should the market pick up pace by mid-2022, properties located in high-valued and centralised locales could see promising upticks in offer prices.
Going forward, Fernandez said with the increase in vaccination rates, PropertyGuru expects consumer sentiment to gradually improve alongside an improved outlook on job security as the nation continues to recover.
He noted that positive price indicators captured in 2H21 foresee a more stabilised market in 1Q22, despite issues surrounding pricing mismatch experienced by the property sector prior to the onset of the pandemic.
He added that the policies announced in Budget 2022 for the property sector illustrate the beginning of more progressive and inclusive approaches in financing and homeownership.
As megaprojects in the country continue to progress, Fernandez foresees this will generate excitement in the property market and add value to residential, commercial and retail segments.
Terrace houses remain the most sought-after property type in the country, representing the largest volume of properties purchased by both first-home buyers and investors in 1H21.
“The preference has been influenced by recent Covid-19 limitations as younger professionals are seeking more space to balance both lifestyle and work needs, especially since working from home is now becoming a long-term option,” he said.
The survey also found the overall median price for transacted properties rose 8.5% during 2H20 to 1H21, the sharpest rise registered since 1H16.