Property market to be stable, set for gradual recovery despite headwinds: Rahim & Co

KUALA LUMPUR: Malaysia’s property market is expected to be stable and is set for a gradual recovery despite cautious sentiments amid the anticipated economic headwinds in 2023, according to real estate consultancy firm, Rahim & Co International Sdn Bhd.

Executive chairman Tan Sri Abdul Rahim Abdul Rahman said the firm is cautiously optimistic about this year’s prospects after transaction activities in 2022 proved that the market is resilient, with a significant rebound in overall market activities.

"We are cautiously optimistic on this year’s prospects, with policies and strategic development roadmaps in place, as well as the potential catalytic impact of major infrastructure developments,” he said in his welcoming address at the launch of the company's Property Market Review 2022/2023 here, today.

The annual publication entitled ‘Rahim & Co Research: Property Market Review 2022/2023’ analyses the property market for every state in the country.

In his presentation, Rahim & Co director of research Sulaiman Akhmady Mohd Saheh said the residential sector saw continued positive growth in transaction performance in 2022.

"The first half of 2022 recorded an increase of 26.3 per cent from the same period a year ago in volume and 32.2 per cent in value, with 116,178 residential units transacted at RM45.6 billion.

"The growth continued in the third quarter (3Q) of the year with the overall first nine months of 2022 recording a growth of 34.6 per cent and 35 per cent in residential transaction volume and value.

"By volume, the residential sector contributed 61.8 per cent of total transactions nationwide,” he said.

Besides that, he said housing affordability stayed at the forefront of issues alongside the overhang and buy-or-rent dilemma.

The publication revealed that the total dwelling overhang for conventional residential, serviced apartments and small office, home office in 3Q 2022 was 55,482 units valued at RM41.57 billion.

On another note, Sulaiman Akhmady said the continuous overnight policy rate (OPR) hike has resulted in the reduction of housing loan applications.

"Previously (last year), it is quite healthy in terms of loan applications but it has tapered down a little bit because of the rising OPR,” he said.

Meanwhile, on Budget 2023, Rahim & Co expects the sentiment towards the property sector to be similar to the previous budget tabling.

"We see right now that the government is actually focusing on regenerative economy growth and property is one of the segments which is more on a downstream segment.

"Basically, the focus in terms of giving some goodies and exemptions for the people should be continued,” he added. - Bernama