Real estate agency Raine & Horne International Zaki + Partners (RHIZP) expects sales for residential property to hit its highest level since 2016 at around RM71 billion by year-end.
RHIZP expects 204,840 housing units to be sold this year, up 3.775 from the 197,385 units or RM68.7 billion sold last year.
The hike in sales is attributed to newly built homes, which is anticipated to grow by between 10% and 11% said Michael Geh, senior partner at RHIZP.
“The residential property market this year is expected to record the highest number of transactions within a four-year period since 2016.”
Geh, who also serves as head of the International Real Estate Federation’s Malaysian chapter, also forecast an increase of between 2% and 3% in the secondary property market, reported Free Malaysia Today.
The reason behind the bullish housing market was due to the availability of affordable and smaller units and the government’s Home Ownership Campaign, said RHIZP managing director Ho Sek Chuen.
“The impact on the primary market of residential properties above RM600,000 from purchases from foreign buyers will only be detected in 2020,” he added.
Commenting on the property glut, Geh noted that most of the unsold properties are found in less desirable locations with limited connectivity.
“I won’t be surprised if it remains unsold for the next two years,” he said.
Finance Minister Lim Guan Eng recently announced that the price threshold for foreign buyers of high-rise property in urban areas has been lowered from RM1 million to RM600,000.
The move was welcomed by the Real Estate and Housing Developers’ Association, saying it would help property developers release unsold units and reinvest in affordable homes.