Posted on : 09 Feb 2021
Now is as good of a time as any to assess the outlook of Malaysia’s property market in 2021. By evaluating the current market state to that of years before, AsiaPropertyHQ was able to determine what the overall outlook of the Malaysian property market may look like throughout 2021.
Between the years 2012 to Q2 2020, the data of the changes in house pricing is shown below, per the Valuation and Property Services of Malaysia.
Throughout 2017 and the first half of 2018, Kuala Lumpur, Selangor, Negeri Sembilan, and Sabah yielded pricing that remained above or around the national average. Cities like Pahang, Perak, and Terengganu had modest increments in pricing, while still being well below the national average.
Kuala Lumpur recorded a decrease in the house price index during Q2 of 2018 and Q1 of 2019. Comparing Q2 2020 with 2012, there is a 13% difference in the increase of property prices.
In an effort to ensure the market remains active with buying and selling, price reductions were seen across the four biggest markets. Kuala Lumpur, Selangor, and Johor experience price decreases. Among these names, Johor had the most significant price reduction of up to -2.97%, with Kuala Lumpur and Selangor seeing a reduction of 2.35% and 1.04% respectively.
Places such as Kelantan, Melaka, and Perlis have houses averaging the price of RM200,000 — less than half of the national average. Locations with cheaper housing are also known to see the least significant increase in pricing over time.
The pricing of properties for all major markets has seen a decrease since 2012, with Johor showing the most significant shifts in pricing. As someone in real estate, this should make for increased interest from house buyers looking to purchase properties at an attractive price — giving you an opportunity to sell more.
For housebuyers, this may be the best time for you to consider purchasing new property, as pricing nationwide has seen a decrease, with campaigns to stimulate the housing market further too. Research has shown that as many as 81% of Malaysians would like to buy a house by the end of 2021, and experts anticipate a likely increase in activity within the market during the second half of 2021.
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