Malaysian property market will stabilize and become positive in 2024: Knight Frank

Petaling Jaya: Knight Frank Malaysia said the local commercial property market is expected to see a stable and positive environment in 2024 due to foreign direct investment (FDI), a stable economy and expectations for future development in the country. He said that

Last year, the Malaysian property market continued to strengthen as evidenced by the first nine months of 2023, with a total of 293,095 transactions and a total of 142 transactions, according to Real Estate Agent’s 2024 Malaysia Commercial Property Investment Sentiment Survey It turned out that a ringgit transaction was recorded. 5 billion.

The report said that compared to the first nine months of 2022, value increased by 8.8% year-on-year and transaction volumes remained stable, with 293,115 transactions worth RM131 billion recorded. It pointed out.

Knight Frank Malaysia Group Managing Director Keith Oy said 2023 will see a resilient performance in both the economy and the property market, laying the groundwork for a stable and cautiously optimistic outlook for the year ahead. He said that he had arranged it.

“The surge in demand for data centers in the Asia-Pacific region, coupled with increased interest in alternative investments such as serviced housing and industrial parks, is supporting the resurgence of the commercial real estate market post-pandemic,” he said in a statement. Stated.

The survey also found that 68% of respondents believe that improved economic conditions will make FDI more favorable.

“FDI in Malaysia is dominated by manufacturing, and the ecosystem and resource availability are expected to continue to attract manufacturing investment into the country. 62% said the country has a stable economic environment. “We believe that the business confidence index will turn positive due to expected future developments.”

When it comes to Budget 2024, 60% of respondents said they were neutral about the commercial real estate market.

Amid global challenges, the majority of respondents expressed optimism about Malaysia’s economic performance, digital evolution and real estate market, driven by factors such as a resilient labor market and positive consumer sentiment. Ta. The favorable outlook for political stability further contributes to improved investor confidence, both domestically and internationally.

Meanwhile, Amy Wong, executive director of the research and consulting firm, noted that respondents expected positive growth in investment in the retail, healthcare, and education/institutional subsectors in 2024.

However, the office and industrial/logistics subsectors have seen minimal interest, while the hotel/leisure sector has maintained similar trends to 2023.

“A survey of respondents’ views on the investment landscape from 2024 to 2026 reveals that serviced residences will become more popular due to increased tourism and the resurgence of the post-war hotel industry, especially in established regions such as the Klang Valley, Penang and Sabah. / It has become clear that there is strong interest in hotels.”

“Industrial and business parks, especially in regions such as the Klang Valley, Penang and Johor, are attracting investors seeking opportunities for logistics and industrial hubs amid the rise of the digital economy,” she said.

Additionally, there is a growing preference for alternative investments, reflecting evolving trends in work tastes and work preferences, and increasing interest in sectors such as co-living/student accommodation, co-working/flexible office space, and the data center industry. Interest has been noticeable, she said. technological progress.

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