Malaysia's property sector is at a pivotal juncture, marked by promising growth yet tempered by ongoing challenges. According to the National Property Information Centre (NAPIC), property transaction values reached a five-year high of RM105.65 billion in the first half of 2024, recording a remarkable 23.8% year-on-year increase.
During the opening address at the 18th Bursa-HLIB Stratum Series titled "Property Sector: Entering A New Cycle?", Hong Leong Investment Bank Bhd Group Managing Director and Chief Executive Officer Lee Jim Leng highlighted the positive indicators for the sector's resilience and adaptability amid adversity.
"Affordability remains a key element in determining the sector's future outlook. In 2025, we expect higher wages for civil servants and the introduction of a higher minimum wage in February will increase disposable income, catalysing demand for properties across the country.
Lee sharing HLIB insights for the property sector for 2025 during the 18th Bursa-HLIB Stratum Series titled 'Property Sector: Entering A New Cycle?'
"This, coupled with the current 3% OPR and stable mortgage rates, creates a favourable environment for both homebuyers and investors, making homeownership more accessible," Lee said, adding that a stable employment growth rate and a projected GDP growth of 4.9% this year will enable the economy remains on firm ground.
"These positive indicators provide the right conditions for sustained growth and a virtuous cycle of demand and investment that contributes to Malaysia's broader economic development.
"While these are promising signs, it is necessary for continued innovative strategies and collaboration within the industry to tackle the challenges," she shared.
Overall, Lee said the sector's optimistic outlook is further supported by the government's initiatives outlined in Budget 2025, notably, the tax reliefs of up to RM7,000 for first-time homebuyers purchasing properties priced up to RM500,000, and up to RM5,000 for homes priced between RM500,000 and RM750,000.
"These initiatives are expected to spur demand while aiding the market's recovery by making homeownership accessible and contribute to long-term growth," she said.
Meanwhile, the event also featured an impressive lineup of speakers like NAPIC Property Index Division Deputy Director Sarmila Husain, Knight Frank Malaysia Executive Director Amy Wong, Gamuda Bhd Deputy Project Director Tan Jun Jing and SP Setia Bhd Deputy President Datuk Yuslina Mohd Yunus who shared diverse and valuable insights on the evolving property market, covering key market shifts, demand drivers, investment opportunities, growth trends, potential risks, strategies for market recovery and the importance of community-centric developments.
