BIMB Securities has forecasted a resilient future for Malaysia’s property market, with strong growth expected in the next two years. Driven by government incentives and key infrastructure projects, the market is projected to maintain robust earnings, making it an attractive option for property buyers and investors, both local and foreign.
Government policies fuel Malaysia’s market optimism
The optimism is being driven by the Malaysian government’s ongoing commitment to increasing affordability for first-time homebuyers. The Housing Credit Guarantee Scheme is set to make homeownership more accessible, while a 100% stamp duty waiver on properties priced below RM 500,000 ($105,000) is expected to boost demand. This policy will be in place until the end of 2025 and, combined with salary raises for civil servants, aims to increase purchasing power, making residential real estate a more attractive investment opportunity. For foreign buyers, this means a more competitive market and a clearer outlook on property affordability in Malaysia.
Developer performance points to a strong sector
Major property developers are already demonstrating strong performance, indicating a healthy market. Mah Sing Group has exceeded expectations with RM 1.66 billion ($348.6 million) in sales, driven by high demand for affordable homes under its M series. Sime Darby Property also reported positive results with RM 2.1 billion ($441 million) in total sales for the first half of 2024, its best showing since its demerger in 2017. However, Matrix Concepts saw a slight 3.5% dip in core net profit but is expected to recover with new project launches in 2025. Foreign property investors can look to these developers for insight into the broader market’s health and future growth potential.
Infrastructure developments to boost property values
Important infrastructure projects, like the Mutiara Light Rail Transit (LRT) Line in Penang and LRT3, will likely increase property values throughout the country. These developments are anticipated to stimulate mixed-use constructions and raise the need for residential properties near transportation centers. Foreign investors looking for properties with long-term value growth should explore areas with significant infrastructure investments, as these projects are expected to boost both property demand and prices in the future.
BIMB’s stock recommendations show confidence in the property sector. The property market in Malaysia is expected to continue growing, thanks to government support and infrastructure projects. This creates a great opportunity for property buyers and foreign investors to invest in a market that is expected to become stronger in the near future.
