Property developers and investors are betting on improved sentiments, while real estate investment trusts continue to acquire assets, according to Tan Ka Leong, group managing director of CBRE|WTW.
He told NST Property that overseas investors have been looking for excellent assets in Malaysia since the reopening of international borders last year.
"A lot of investors are searching for assets to acquire, either commercial, which includes office skyscrapers and hotels, or residential with attractive yields," he said.
Tan is optimistic about the overall property market in the fiscal year 2023 (FY2023), predicting stronger transactions across all real estate segments compared to FY2022.
"Property prices increased in the market last year. It was a strong one, and despite the obstacles, we made it through the review year unscathed. Malaysia continues to be a bright spot in the region, with active property transactions up from 2021," he said yesterday at the unveiling of the firm's Market Outlook 2023 report.
According to the report, the Klang Valley, Iskandar Malaysia in Johor, and Kuching in Sarawak all did well, while the remaining regions maintained their market performance.
CBRE|WTW chairman Foo Gee Jen said that deal momentum is increasing.
"Confidence levels have also been improving. With the election behind us, we're fortunate to have more political stability. In terms of initiatives, the new government has been putting the rakyat at heart, with a priority on developing infrastructure. This is crucial for nation-building," he said.
Ungku Mohd Iskandar Ungku Ismail, director of CBRE|WTW, said that the residential sector was recovering in all regions.
More high-end residential units are projected to reach the market this year, he said.
According to the market outlook study, overall loan approvals for residential property transactions increased 17.6 per cent year on year to RM49.32 billion in the third quarter of 2022. This is despite the fact that the Overnight Policy Rate (OPR) was raised four times last year.
However, supply moderated in most regions as developers remain cautious about launching new units.
The recovery also includes an increase in the supply of luxury residential properties in Klang Valley, which reached 68,000 units by the third quarter of 2022.
The industrial sector was the primary driver of growth in Klang Valley, Johor, and Penang.
Transactions in Klang Valley were mostly driven by logistics and the need for warehouses to accommodate the rising e-commerce.
Foreign pharmaceutical businesses and semiconductor manufacturers have invested in new distribution centres and industrial parks in Penang, which is the second largest beneficiary of approved manufacturing investments.
Last year, the construction of data centres, logistics, and warehousing facilities was the focus in Johor.