One way to save the real estate sector is for foreign buyers to return
According to Free Malaysia Today (FMT), Malaysia’s property sector is likely to face a difficult second half as demand wanes, materials become more expensive, and interest rates increase.
The first half of 2022 showed unremarkable results that Siva Shanker, CEO of Rahim and Co International Property Consultations told FMT Business that the real estate sector is expected to only grow two to four percent by the end of the year.
He added that properties outside prime locations may encounter a lack of demand. The demand for office space and retail outlets is also at risk as preference shifts to online operations.
Industrial properties, on the other hand, are slated to see strong growth as the economy recovers.
One way to save the real estate sector is for foreign buyers to return. TheStar reported that the sooner they do, the better it will be for key property players whose margins are being tested to their limits.
Datuk Seri Koe Peng Kang, deputy president and COO of S P Setia Bhd, suggested that the government should promote foreign investment in the local property market, especially high-end properties.
He added that the government should think of ways to promote Malaysia as the perfect place for foreigners to retire. That way, there will be more people who have money to spend on real estate.
He also cited the Melbourne property market, whose demand would not be as robust as it is if not for Chinese, Malaysian, and Singaporean buyers, and said that if the government wants its property sector to thrive, it cannot rely on domestic buyers alone.
Meanwhile, according to a recent survey, more than two-thirds of approximately 350 real estate agents in Malaysia expect foreign purchases to help the sector recover to pre-pandemic levels by the end of 2023.
According to theSun, foreign investors will once again find the Malaysian market irresistible, as most investors prefer to purchase from rising markets.
The Property Report editors wrote this article. For more information, email: [email protected].
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