Minister Announces Property Market on the Path to Recovery


Author Updated on: May 23, 2024

Petaling Jaya, Selangor (23th May 2024) – The property market is on the path to recovery and is expected to improve further this year due to a better economic outlook, says Housing and Local Government Minister Nga Kor Ming.

Deputy Speaker Nga Kor Ming

Citing a report from The Star, Nga highlighted the rising number of expatriates as a positive sign for the property market. “The immigration department issued 154,155 work permits to expatriates in 2023, nearly a 50% increase from 2022. This is a strong sign of recovery,” Nga said at the Real Estate and Housing Developers Association of Malaysia (Rehda) Institute Regional Housing Conference 2024.

Nga assured that Malaysia’s property market is not experiencing a bubble, noting slow but steady growth as a sign of improving local conditions. He predicted further recovery and growth in the next three years, driven by a rebound in property stocks on Bursa Malaysia, where some counters saw up to 700% growth in share price over the past year.

Additionally, Nga pointed out that the property market recorded over 399,000 transactions last year, with a value nearing RM200 billion, marking year-on-year increases of 2.5% in transactions and 9.9% in value. “The housing industry is crucial for the economy, and its growth enhances the country’s financial health,” he stated.

Nga emphasized the importance of maintaining a balanced view between developers and buyers. The government is working on defining different affordable price thresholds for various regions, moving away from the previous uniform threshold of RM300,000. “We are preparing a more realistic definition of affordable housing tailored to each region,” Nga explained.

He also mentioned the new Affordable Housing 2 report by Rehda Institute, in collaboration with University Utara Malaysia, Bank Pembangunan Malaysia Bhd, and other organizations, which aims to provide fresh insights into housing affordability by considering expenses and net disposable income of urban households.

 Originality news from www.thestar.com.my.

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