The Malaysian property market is appealing for many wealthy investors, both locally and from abroad. There are some unique characteristics which make the purchase of property in Malaysia lucrative. However, if you are interested in purchasing Malaysian property, it is crucial to understand the property market, and also to be aware of the current trends. In this article, we will outline the state of the Malaysian property market in 2019, and also provide predictions that have been given by industry professionals.
The Biggest Industries in Malaysia
If you want to understand the property market in Malaysia, firstly you must consider properly the specific appeals of the country. The biggest industries can explain the allure of the property market for foreigners. The service sector, in particular, is booming. It is a largely industrialised market economy which makes it primed for long term sustainable growth. The financial services and tourism services continue to boom. Another industry that has been slowly creeping up is the gambling industry. The inclusion of casinos in resorts has provided a boost for tourism, and the somewhat relaxed laws have allowed the country to become a major gambling hub of the region. This is both in terms of physical gambling casinos.. The status of gambling both offline and online in Malaysia is still somewhat of a grey area. We expect a further loosening of these regulations to increase the impact of the gambling industry. The leading exports in Malaysia are electronic goods and liquified natural gas. There are many healthy industries within the country that have allowed it to prosper as a high-income country. This provides the perfect setting for a stable property market.
Malaysian Property Market in 2018
In general, the property market of the preceding year was largely unimpressive. When inflation was taken into account, there was a slight negative growth in housing prices. This was due to an oversupply which resulted in many unsold properties. Additionally, the slowdown in economic growth also contributed to this. Many Malaysians have not seen their incomes rise, which has priced many out of the property market completely. Additionally, there have been stricter rules and regulations for how foreigners can purchase property in Malaysia. This was done in an attempt to curb off foreign investors from snapping up affordable property from Malaysian locals; however, these minimum investment requirements have reduced the interest of foreign investment.
Property Market Segmentation
The country is split in terms of affordable housing and the most expensive housing. Prices can vary wildly depending on the area and city. The cheapest places to buy a home include Kelantan and Perlis where you can expect to pay around 175,000 RM for the average home. This price is far lower than the average of the country. In comparison, the average property price in Kuala Lumpur was 772,000 RM. After this city, there is a big drop off with the average property price being around the 450,000 RM mark for both Selangor and Sabah. This shows how heavily segmented the property market is depending on the city.
Outlook for 2019
The general outlook for property in 2019 is expectations that there will be slight turnaround to the previous year. However, the long-term factors aren’t likely to change quickly. Economic growth will remain steady, and this should provide a boost for the property market due to stronger consumer confidence. Additionally, there looks to be higher political stability which is usually good news for a property market. The government is also taking specific steps to curb the problems of oversupply. Measures such as stamp duty are helping to alleviate this issue. Overall, there is quiet optimism for the Malaysian property market in 2019.
Conclusion
You should now have a clearer understanding of the general characteristics that make up the Malaysian property market. Additionally, you will see where the trends are currently heading, and this can help you to make an informed purchasing decision. It is evident that Malaysia will remain an attractive destination for many years to come, and this will provide long term stability for the property market.
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