KUALA LUMPUR (Jan 16): Malaysia’s property market has entered an upcycle, driven by rising business and consumer confidence, according to the Real Estate and Housing Developers' Association (Rehda) Institute chairman Datuk Jeffrey Ng Tiong Lip.

This positive outlook is supported by strategic government initiatives, including the recently announced Johor-Singapore Special Economic Zone (JS-SEZ). 

“In 2024, we saw evidence, based on (property) transactions, a drop in unsold units and an increase in sales. That gives visibility in terms of the so-called recovery in the property market,” Ng told The Edge after attending Rehda Institute's CEO Series 2025 Economy & Business Forum.

Domestically, various recently announced strategic plans are also driving property growth, Ng said.

“The New Industrial Master Plan, the National Energy Transition Roadmap — all the new economy and renewable energy plans that the government has announced are drawing investors' interest,” he said. “This, and the fact that the catalyst (JS-SEZ) in Johor has sparked a lot of FDIs (foreign direct investment),” he added.

Another catalyst contributing to the property upcycle is the ringgit, which Ng believes remains at an attractive rate for foreign investors looking to invest in the local property market.

Ng also highlighted the positive role of Malaysia and Singapore’s collaboration in boosting the property market. “This hand-holding with Singapore cannot be underestimated. Joint ventures with Singapore entities, business consortiums — this is what is really needed because G2G [government-to-government] is working very well, and they come up with policies incentivising private sector participation,” he said.

“There is a need for greater collaboration between Malaysia and Singapore’s private sectors. Singaporeans are familiar with the Malaysian market, and their buyers are well-versed in our property landscape,” he added.

Meanwhile, Ng does not expect rising costs — from the impending minimum wage hike and the mandatory pension fund contribution for foreign workers — to impede the sector’s recovery.

“I think the economic reality is that there will be some passing of costs (to end property buyers), but I personally do not think that these challenges are a showstopper. As long as the investment side continues to pour in, whether it's FDI or DDI (domestic direct investment) ... there will be (positive) spillover into the property market,” he added.

Data from the National Property Information Centre (Napic) shows that Malaysia’s property transaction value soared to RM105.65 billion in the first half of 2024 (1H2024) — its highest in five years — after jumping 23.8% from RM85.37 billion in 1H2023.

In terms of transaction volume, a total of 198,806 properties were sold in 1H2024, up 8% from 184,140 units in 1H2023, while the number of completed but unsold residential properties fell to 22,642 units, worth RM14.24 billion in 1H2024, from 25,816 units worth RM17.68 billion in 2H2023.