KUALA LUMPUR: Infrastructure developments are poised to positively influence property market dynamics in specific submarkets, according to PropertyGuru Malaysia's latest Property Market Report (MPMR) for Q1 2024.
Kenneth Soh, the firm's country manager, highlighted a 2.0 per cent increase in the Sale Demand Index for Johor's residential properties.
He attributed this surge in interest to the impending Rapid Transit System (RTS) project, which is expected to stimulate demand for real estate in neighboring communities.
Soh also noted the anticipated impact of the Penang LRT Mutiara Line's completion in 2030 on property appeals in its vicinity.
"Despite the market's uncertainties, there is a cautious optimism that strategic infrastructure projects such as the Penang LRT will contribute positively to market growth," he said.
Looking ahead, Soh underscored the ongoing importance of such improvements in determining real estate demand, as they influence job accessibility and development opportunities in surrounding areas. He emphasized the necessity of considering these factors when analyzing market trends and making investment decisions.
Soh anticipates stability in residential supply and demand despite seasonal variations.
The MPMR reflects a minor 1.1 per cent quarter-on-quarter (QoQ) decrease in the Sale Demand Index and a 4.4 per cent decline in the Sale Supply Index, primarily due to seasonal factors like Chinese New Year celebrations.
Similar declines of 5.5 per cent were observed in Q1 2023, compared to 2.3 per cent in Q1 2022.
Regarding housing prices, there was a modest 1.4 per cent QoQ increase recorded in the Sale Price Index.
Soh highlighted recent loan data from Bank Negara Malaysia, indicating total applications for property purchase loans in 2023 reached RM605.3 billion, reflecting a year-on-year increase of 5.7 percent.
Steady interest rates signal the central bank's confidence in maintaining inflation at sustainable levels.
Despite ongoing uncertainties, including heightened geopolitical tensions and economic downturns, property seekers are adjusting their housing expectations accordingly.
Soh believes the market is well-positioned for stability, provided no major unforeseen shocks occur.
He noted that with property prices remaining high, property seekers are open to compromising on amenities to afford properties.
According to the PropertyGuru Malaysia Consumer Sentiment Survey H1 2024, about two in three respondents anticipate a 20 per cent discount for properties with fewer amenities.
Soh also expressed anticipation for the introduction of the Housing and Local Government Ministry's (KPKT) newly announced public housing model, the Program Residensi Rakyat (PRR), which will provide quality housing to those in need at a construction cost of RM300,000.