KUALA LUMPUR: Sentiment in Malaysia's property market is expected to improve in 2019, especially the residential property market, as policies announced under Budget 2019 are expected to strengthen demand, particularly among first-time home buyers, said property advisor Knight Frank Malaysia.
“The property market in Malaysia experienced a pick-up in activities during the second half of 2018, as pockets of opportunities can be discovered in different areas across the region, barring any external shocks such as a global economic slowdown,” it said in a statement on Tuesday.
The views are in conjunction with Knight Frank Malaysia's latest research report, "Real Estate Highlights 2nd Half of 2018", launched on Tuesday which highlights the property trends and outlook in Malaysia's key markets.
Meanwhile, the industrial sector will continue its resilience due to a favourable growth trajectory in key manufacturing industries.
However, the office and retail markets are set to remain challenging due to elevated supply levels, said Knight Frank Malaysia.
Knight Frank Malaysia said this year is anticipated to see a higher level of land banking activities among industrial property developers.
It said this was because strong latent demand continues to be omnipresent especially for industrial properties with high specifications, as occupiers understand the need to jump onto the Industry 4.0 bandwagon in order to future-proof their businesses.
This presents a unique opportunity for developers and investors alike to gain attractive monetary returns by providing end-users with the right products.
Moving forward, Knight Frank Malaysia expects to see new large-scale industrial developments taking shape in strategic locations due to robust demand for warehouses.
For example, the proposed Free Trade Zone (FTZ) in Pulau Indah, which was recently unveiled by the government, is expected to generate interest from manufacturers and logistics operators alike.
“All in all, Malaysia's industrial property sector, which has been the silver lining for Malaysia's subdued property market in recent years, is set to continue its resilience.” - Bernama