Titijaya group managing director Datuk Lim Poh Yit
KUALA LUMPUR: Malaysia’s property market in 2025 is set to see growing demand for transit-oriented development (ToD) projects and affordable properties, said Titijaya Land Bhd
.
The increased appetite for affordable properties priced between RM300,000 and RM500,000 is in response to concerns over inflation and higher living costs, the urban lifestyle developer said in a statement today.
Group managing director Datuk Lim Poh Yit said the rising demand for ToD projects was observed particularly among the dynamic younger generation of city workers.
"Well-designed ToD projects deliver a vibrant blend of urban living and work experiences that have proven popular in major cities across Japan, Hong Kong, and Singapore.
"We also see the wave of public transport infrastructure projects being developed or planned across Malaysia, such as the Klang Valley Double Track Phase 2, the East Coast Rail Link, Circle Line MRT 3, Light Rail Transit 3, and Kuala Lumpur-Singapore High-Speed Rail project, as a tailwind for the ToD segment,” he said.
He also noted that the overnight policy rate (OPR) increase in 2023 resulted in higher monthly mortgage repayments for many Malaysian property buyers.
Thus, he said those who have taken larger loans, particularly those who obtained floating-rate loans, are typically the most impacted by higher OPR rates.
"With concerns over rising inflation, subsidy rationalisation, and a potential rate hike in 2025, buyers are tightening their belts.
"RM500,000-RM700,000 used to be a range favoured by local property buyers, but this has changed due to lower-than-expected spending power and higher living expenses,” he said.
As a result, buyers who previously favoured units priced at RM500,000 are now looking for units priced at RM300,000, he added. - Bernama
