Real Estate Industry Forecasts Residential Prices To Rise 9.95% And Rents 9.57% In 2024: New Report – kopiandproperty.com
Press Release: Real Estate Industry Forecasts Residential Prices To Rise 9.95% And Rents 9.57% In 2024: New Report
Kuala Lumpur (5 December 2023) — The year 2024 could be a good one for Malaysia’s real estate markets according to the new IQI Property Survey and Index – Malaysia Q4 2023, which was released today by IQI, a global real estate agency network with more than 30,000 agents in negotiators and a member of Juwai IQI.
“This new research reveals strong market sentiment among the hundreds of real estate agents and negotiators who make up our research panel,” said Kashif Ansari, who serves as Co-Founder and Group CEO of Juwai IQI and also as Group CEO of IQI.
“The buy–rent ratio reveals strong confidence in the real estate market, with 91.1% saying they would advise a friend to buy today, while only 8.9% advise renting. The numbers are nearly as lopsided in Kuala Lumpur and Selangor as they are country-wide, with 88.8% for buying versus 11.2% for renting.
“Agents may recommend buying because they expect significant increases in both sales prices and rents in 2024. This optimism might be based on expected economic trends, investment inflows, infrastructure improvements, and demand and supply dynamics.
“The forecast is for a 9.95% increase in residential prices and a 9.57% increase in rents during the next 12 months. Specifically in Kuala Lumpur and Selangor, the industry expects prices to climb by 9.7% and rents by 9.9%.
“Responses are overwhelmingly positive across all locations. Only five per cent of our country wide research panel expect prices to fall and only 3% expect rents to drop.
“The widespread expectation that prices and rents will climb signals the potential for capital appreciation and rental yield growth. That could encourage investors and renters to return to the market and lead to developers launching new projects.
“So, we expect to see more demand in 2024, driven by Malaysia’s demographic trends, urbanization, economic growth, and changes in housing affordability.
“Most of the increase in transaction volume will be for moderately and affordably priced property. Fifty-one per cent of purchases are valued between RM100,000 and RM500,000, according to data from the National Property Information Centre (NAPIC).
“When it comes to the economic outlook, the research reveals a mixed but generally positive outlook. Agents in our research panel are keeping a wary eye on broader economic factors and global disruptions that have the potential to undermine Malaysia trade growth.
“Over half (56%) of respondents expect a more robust economy over the next 12 months, while only one-third (33.5%) expect the economy to weaken. The most common view is that the economy will be “Somewhat stronger” (35%), followed by “Somewhat weaker” (25%).
“The World Bank’s latest projections, released in October, support a positive outlook. The Bank projects that GDP growth will be 4.3% in 2024, up from 3.9% in 2023.
“We believe this report is the first comprehensive research on the industries attitudes towards the real estate market and economy in 2024. It should provide valuable insights to developers, consumers, and policy makers.
“The IQI Property Survey and Index – Malaysia Q4 2023 is based on survey research conducted from 1 to 22 November 2023 with a research panel of 203 real estate agents and negotiators in every state and territory except Perlis.”
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