PETALING JAYA: The overall value in the residential sub-sector in Malaysia is likely to remain soft throughout 2021 and pricing for prime housing, in particular landed properties, is expected to gradually rise throughout 2022 as the property market is widely expected to start recovering on the back of a more positive outlook, according to Knight Frank Malaysia.
“Moving forward, with domestic investors shifting from the stock market to safer and less volatile alternative investment products – supported by record-low interest rate environment, lockdown savings, attractive property deals (Home Ownership Campaign and developers’ sales campaigns) – the overall housing market is expected to gradually recover throughout 2022 although prices, in general, are expected to remain flattish,” said Knight Frank Malaysia deputy managing director Keith Ooi in a statement today.
Although there was an improvement in transactional activity in first-quarter (Q1’21), the average house price for Kuala Lumpur – a buyer’s market – was lower by 3.1% on the year, likely attributed to weaker demand amid rising inventory as potential buyers and investors adopt the “wait and see” approach during this trying time.
In contrast, the average house price for Penang remained resilient with 0.2% growth supported by initiatives under the various stimulus packages and the national/state HOCs.
The story for residential markets across Asia-Pacific has been one of resilience in the last 12 months. Hong Kong has achieved record prices, Singapore’s sales and rental sectors have seen robust levels of activity, while the appetite for property among domestic buyers in New Zealand and Australia has surged.
Knight Frank’s Global Buyer Survey released today highlighted that globally, 19% of respondents have moved house since the start of the pandemic, this rises to 25% in Australasia and North America. Of the non-movers, 20% are more inclined to move in 2021 as the pandemic continues.
Cities are back in favour. Out of those respondents who are more inclined to move in the next 12 months, 38% of them are looking at city locations with 33% opting for the suburbs.
Some 46% of respondents are more likely to buy a detached home or villa but demand for apartments has increased to 19%, up from 12% in 2020. This reflects an increase in demand for both larger, more spacious apartments, and pieds-a-terre in city centres.
These coincide with Knight Frank’s Prime Global Forecast which highlights that global house prices are on average likely to increase by 4% in 2021. Over two-thirds of people expect the value of their current home to increase in the next year with most expecting a rise of between 1% and 9% over the 12 months.
Source: The Sun Daily
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