If you’re planning to sell property in Malaysia fast, you will know that things haven’t been great in the Malaysian housing market lately. A number of events came together in 2016, such as the depreciation of the ringgit, tightening of lending standards by banks, efforts taken by the government to curb speculation in property – which have driven down property prices across the country.
So what’s the outlook for the property market in Malaysia for 2017, which is only a couple of months away at the time of this writing?
#1: Good news for tenants. Lower rents expected across the country.
Tenants in Malaysia would be the happiest at how things have turned out in the housing market. With a large number of apartments completed in 2016, there’s a glut of properties for sale, with not as many takers.
So the frustrated owners have been trying to cover at least a part of their investment by offering these apartments for much lower rents than they would otherwise.
With the number of rental properties increasing across Malaysia, we expect the rents to decline further in 2017. So tenants will be the biggest beneficiaries of this. They should take full advantage of this opportunity to lock the rental prices at a desirable rate for the long term.
#2: Cash rich investors to be the biggest beneficiaries.
The Malaysian government has taken many measures to curb speculative investment in the country. Banks have tightened lending standards. Interest rates are at the highest point that they’ve been for many years in the past. Demand for both old and new properties is a fraction of what it was as recently as in 2013.
Speculators no longer run the roost in the housing market, as they no longer have the power of leverage to help them with their purchases. What this means is that cash rich investors have all the cards in their favour. So this is a great time to hunt for great bargains as properties for sale in Malaysia are available at rock-bottom prices.
#3: The return of the foreign investor?
The fall in value of the Ringgit means that properties in Malaysia are cheaper today than they’ve been for years. Many real estate experts predicted that foreign investors would take advantage of this and buy lots of properties in Malaysia. However, that did not happen in 2016 as foreign investors are still waiting for property prices to bottom out.
The government hasn’t helped matters by imposing stricter controls on foreign investment in the residential property market in Malaysia. However, this is expected to change in 2017, as a lot of foreign investors, especially those based in Singapore, are waiting to pounce on some great bargains in Kuala Lumpur.
#4: Affordable housing is the new trend.
The craze for luxury homes in Malaysia is expected to meet a natural death in 2017. We expect the demand for affordable housing to pick up as people are becoming more realistic about their expectations. Many Malaysians complain about how they cannot afford to own a house in their own country. That is going to change in 2017.