KUALA LUMPUR: The housing market could return to the positive levels seen more than 10 years ago, according to Radium Development Bhd group managing director Datuk Gary Gan.
"While there is still a notable gap between the property boom of 2010 and current conditions, we are seeing signs of improvement in the market. The worst is over for us," he told Business Times.
Gan is optimistic that Malaysia's housing market could return to those levels if the economy stays robust and construction projects are expedited.
"We're witnessing increased foreign investment, largely driven by major infrastructure projects and the development of economic zones in Malaysia. With more investors coming in, we can expect pent-up demand for landed and high-rise residential properties in prime locations," he added.
The housing market had weakened before the pandemic due to concerns similar to those of the 2008 financial crisis. At that time, housing values dropped, many projects were left incomplete, and consumer confidence dipped.
Gan highlighted several factors that could contribute to a recovery to 2010 levels, such as lower interest rates and new initiatives from the government.
"Lower mortgage rates improve affordability, which attracts more buyers and can heat up the market. If the economy continues to strengthen, we could see a housing boom within two to three years," he said.
"I hope the government introduces more initiatives in Budget 2025 to support first-time homebuyers, as many are focusing on affordable properties," Gan said.
He said although Bank Negara Malaysia has maintained the Overnight Policy Rate (OPR) at 3.00 per cent, it still has an impact on certain buyers.
"Compared to two or three years ago, the OPR is still higher. A reduction of 0.25 basis points could help some buyers. If you're purchasing for personal use, anytime can be a good time to buy," he said.
Regarding Radium's expansion, Gan said the company aims to be a city-centric developer, focusing on fast-turnaround projects in Kuala Lumpur, particularly in well-established areas with existing amenities.
"We conduct thorough studies before acquiring land and launching projects," he said, noting that Radium plans to launch its third development (post listing) in the fourth quarter of this year.
The project, called Radium Arena Residences, will consist of two residential blocks with a gross development value of RM550 million.
Situated on Old Klang Road, Kuala Lumpur, near the Datuk Lee Chong Wei Sports Arena, it will offer 988 units with built-up sizes ranging from 658 to 920 sq ft.
The units are priced between RM400,000 and RM600,000, or an average of RM600 per square foot.
"We are highly confident that we will sell 50 per cent of the units by the end of this year and reach 80 per cent within a year of the launch," he said.
Radium was listed on the Main Market of Bursa Malaysia in May 2023.
The company raised RM434 million in proceeds from its share sale, of which RM171 million has been earmarked for the acquisition of landbank and development expenditure, and RM109.3 million for hotel construction.