Malaysia’s industrial and residential sectors expected to thrive in 2022

Things are definitely looking up for Malaysia’s industrial and residential sectors despite the global pandemic

The majority of economic sectors and businesses have reopened after Malaysia’s successful vaccination drive.

In a summary of Knight Frank Malaysia’s latest publication, the Real Estate Highlights H2 2021, provided by iProperty.com.my, the country’s Industrial Production Index (IPI) remained above the 100-point threshold thanks to the manufacturing and electricity sectors.

Due to the pandemic, digital transformation and e-commerce have grown exponentially. Food, fast-moving consumer goods, as well as health and pharmaceuticals helped increase the demand for industrial real estate.

Judy Ong, Knight Frank Malaysia’s Executive Director of Research & Consultancy, stated that “The country’s industrial market has seen steady growth in recent years largely due to a higher e-commerce penetration rate resulting in additional warehousing/logistics space requirements to meet the surge in last-mile delivery as well as the structural shift towards omnichannel retailing. It is anticipated that the momentum gained will continue into 2022 and beyond as demand continues to remain resilient.”

More: Malaysia’s industrial output increases by 5.5% in October

The residential property sector is also gaining momentum, according to The Malaysian Reserve. Knight Frank Malaysia points out that this is being supported by the recent homeownership campaign (HOC), developer-led marketing efforts, proper product positioning, property-related incentives, and low-interest-rate environments.

Knight Frank Malaysia deputy MD Keith Ooi discussed how the pandemic has affected the housing market, saying that potential homebuyers are urged to find housing in suburbs equipped with good connectivity. He added that people are looking for homes that provide both comfort and functionality because of the hybrid work arrangements.

The recently concluded HOC and the completion of Ascott Residence spurred interest, as Knight Frank Malaysia MD Sarkunan Subramaniam noted that these factors improved sales and added that “In 3Q21, the volume of transactions of high-rise residential properties (including serviced apartments) in KL showed an upward trend, soaring 25.5 percent on the quarter albeit registering lower transacted value, likely supported by [a] gradual easing of restrictions and reopening of sales galleries.”

The Property Report editors wrote this article. For more information, email: [email protected].