Qualampur: Malaysia’s assets are shown signs of improvement in overhang, in which the total number of unusold or overhang housing units is decreasing in the third quarter of 2024 (Q3’24), the property advisor Raheim and co -research director, Suleman Saheh, by Suleman Saheh Said.
He said that it includes traditional residential units as well as the apartments and small offices, home office units.
However, the challenges persist, however, the strength and demand intervals have continued significant obstacles in addressing the overhang issue.
“The Malaysian property market saw a decrease in the number of overhang housing units in the third quarter of 2024, indicating some recovery in the region. The total overhang housing units fell to 10.8% by the end of the quarter as compared to the previous period (49,364). Despite this, we noticed that the reduction in overhang does not mean overall market recovery, as the underlying issues affect property sales, ”he asked reporters in the presentation of Raheim & Company on the trends of the property market on Tuesday.
Suleman said that with focusing focus in cheap and middle-range property sectors, strength remains an important challenge.
“While developers have shifted their attention to more affordable units, the demand is still not meeting the supply, especially in some places and segments. Property prices have continued to rise, especially in urban areas, what buyers can spend and what is being offered in the market is creating a wide difference, ”he said.
Suleman said that lack of skilled workers, cost of rising materials and overall reduction of investors also obstruct the complete recovery of the region.
He said, “While the government’s policies are on track to address the property overhang, a lot needs to be done to balance the supply and demand, especially in the affordable housing area,” he said.
Another factor affecting the market, Suleman said, “is mismatched between types of assets being developed and real buyer preferences.”
“Many developers have focused on high-end projects, leading to an oversupply in the luxury segment, while the demand for prices below RM500,000 remains the strongest. This imbalance has consistently contributed to the overhang issue, despite the recent number of improvements, ”Suleman said.
In addition, he said that income inequality remains a major factor contributing to Malaysia’s assets, as wage hike has not coordinated with the rising prices of property.
“While housing prices, especially in urban centers, have risen over years, many medium and low-come homes continue to struggle with stable income and high life costs. This difference has made the homeowner rapidly difficult for an important part of the population, causing a weak demand in the market.
He said, “Without the policies that address income inequality such as high minimum wages, better job opportunities, and more accessible housing finance, ability crisis, which hinders the recovery of the property sector, causing a hindrance to the recovery of the property sector It is, “he said.
In response to these challenges, Suleman said, some developers have started launching flexible financing schemes and rented options to attract home buyers for the first time.
“These initiatives aim to reduce admission obstacles for potential buyers that can struggle with payment or strict mortgage requirements. However, such schemes alone may not be sufficient to solve the ability crisis without comprehensive policy interventions alone. ,
Looking further, Suleman said that Malaysia’s property market is expected to grow in 2025, but at a higher speed than a strong performance in 2024.
“Last year, the transaction price was seen by 6.2%, but we have estimated a 5% increase this year, based on the Q4’24 performance. According to the first nine months, 311,211 transactions were recorded, and if Q4’24 receives approximately 120,000 transactions, the total activity can reach a level equal to the market peak of 2011-2012 (430,403).
“In all property sectors including residential, commercial, agriculture, industrial and development land, transactions across the country increased, indicating extensive-based market activity. However, rising costs, including global political factors and inflation, can slow down the speed, stable wages and external economic uncertainty. While the demand remains strong, the concerns of the ability and high costs can affect both ownership and profitability of the property, ”Suleman said.
