KUALA LUMPUR: Malaysia’s property market continues to grow at a steady pace, with the total transaction value expected to exceed RM250 billion this year, said Housing and Local Government Minister Nga Kor Ming.
The minister noted that the total transaction value in Malaysia’s property market has been climbing steadily, from RM196.8 billion in 2023 to RM232.3 billion in 2024. "Malaysia’s property market continues to grow at a steady pace, with no signs of a bubble. Total property transactions have improved consistently over the past three years, reflecting healthy market conditions rather than speculative activity,” he said in a statement.
According to the Department of Statistics Malaysia, the homeownership rate in Malaysia currently stands at 76.5 per cent, surpassing other developed countries, including Australia, the United Kingdom, the United States, and Germany.
To further boost homeownership, Nga said the government’s priority is to raise income levels, adding that direct price controls are not feasible in a free market. "The government under the leadership of Prime Minister Datuk Seri Anwar is actively attracting more foreign direct investments into the country,” he added.
Nga said the World Bank has predicted that Malaysia will become a high-income nation by 2028, with a gross national income (GNI) per capita of US$14,000 or more, and this will allow more people to afford homes.
"From a buyer’s perspective, if the value of the property you bought does not go up and depreciates instead, you will most likely be in a state of despair. What we need is healthy appreciation, not depreciation, nor skyrocketing prices, which is a speculative growth,” he added.
In terms of financial support, Nga reiterated that the government has introduced the RM40 billion Housing Credit Guarantee Scheme (SJKP) to help more Malaysians purchase their first homes. He also urged all banks to participate in the scheme to improve access to homeownership.
"To date, the SJKP scheme has helped more than 97,750 people own their first home, and we hope more Malaysians will benefit from this scheme guaranteed by the government,” he said. - Bernama
