Malaysia’s property market primed for investors this year

Despite the ongoing pandemic, investors have made advances on their property portfolios  

With the market’s high supply and low prices, 2021 is considered a good year for property investment. Source: PattaniStudio/Shutterstock

According to FMT, a recent study showed that investor transactions had increased by 38 percent, with 82 percent of all completed transactions in 2020 attributed to investors, signaling a positive outlook for Malaysia’s property market this year.  

Siva Shanker, chief executive officer of Rahim & Co International Property Consultants, believes that it is typical to see a drop in transactions when a pandemic breaks out.  

“When the industry leaders – the risk-takers – start buying again, herd mentality kicks in and as more people buy properties, the market moves. That’s exactly how the market fluctuates,” he said. 

Siva expects a sharp increase this year as COVID-19 is contained, and the vaccine rollout will drive economic recovery. “There’s a lot of pent-up demand from investors, investment houses and people who refrained from investing last year. Now, we’re into another lockdown with no end in sight, but generally, people are less spooked now compared to the first lockdown. It’s not such a bad situation, but it will stifle demand.”  

Ahyat Ishak, Pejuang Hartanah’s founder, insisted that there are many opportunities waiting to be seized. However, he cautions potential investors and homebuyers to first reflect on these three financial situation aspects – personal finances, family, and team (business).  

“Are you in a position of ‘survive’ or ‘thrive’? Crisis is about danger and opportunity. First, we need to keep ourselves safe from danger, only then can we talk about grabbing opportunities,” he stated. 

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With the market’s high supply and low prices, 2021 is considered a good year for property investment.  

Ahyat advised, “It’s an absolutely great year to buy your first home, as well as upgrade and invest. The timing of the market is perfect. Just like buying stocks, it is best to buy when prices are low.” 

Siva also had a similar viewpoint, suggesting buyers with the financial capacity to begin investing now rather than wait for 2022, as prices could increase by two to five percent.