Growth momentum set to continue

 

Chester Cheng - Real Estate #malaysia2024 #malaysiarealestate #malaysiaproperty As the year 2023 comes to an ending, I wish everyone Happy New Year! This video sharing is my own personal opinions about the coming year 2024 for Malaysian real estate market.

The positive growth trend is driven by a higher increase in transaction values in all subsectors.

KAJANG: The Malaysian property market transaction values rose by almost 10% to a record of RM196.83bil in 2023 from the previous year, with its growth momentum expected to continue this year.

The property overhang situation had seen a slight improvement as the numbers continued to decline by 7% and 4% in volume and transaction values, respectively, from 2022.

Moving forward, the Valuation and Property Services Department (VPSD) said the property market performance is expected to remain cautiously optimistic this year. This is predicated on the healthy gross domestic product growth forecast for this year that’s supported by resilient domestic growth prospects.

Accommodative policies, well-executed measures outlined in Budget 2024 and proper implementation of strategies and initiatives under the 12th Malaysia Plan are expected to catalyse further growth in the property sector, the department said.

The number of property transactions last year recorded a positive growth of 2.5% to 399,008 in 2023, compared to 389,107 last year. The statistics were taken from the Property Market Report 2023 published by the National Property Information Centre (Napic) and VPSD, which is a department under the Finance Ministry.

“The performance of the property market is encouraging with transaction values in 2023 having reached a record, which is an increase of 9.9% from 2022.

“The momentum of the property market will continue to be supported through Budget 2024 measures related to affordable housing and first home financing towards generating a stronger economic performance for the year 2024,” said Finance Minister II senator Datuk Seri Amir Hamzah Azizan.

The positive growth trend is driven by a higher increase in transaction values in all subsectors, namely the residential at 7.1%, commercial 17.5%, industrial 13.1%, agriculture 4.6% and development land and others at 13.8%, compared to 2022.

Newly launched residential units also saw an increase of 4.4% to 56,526 units with a better sales performance of 40.4% from 36% in 2022, the department said.

In his speech at the property report launch yesterday, Amir Hamzah also highlighted the reduction in the property overhang.

“The status for the overhang or unsold units have reduced to 26,000 units with a value of RM17.7bil compared with almost 28,000 units valued at RM18.41bil in 2022,” he said.

Amir Hamzah also said there will be an improvement in the requirements for applicants of the Malaysia My Second Home programme to increase its “flexibility.”

“This will encourage more interest into property transactions in the country that will also attract more tourists and foreign investors into the country,” he said.

This move is expected to help increase investments into the financial markets, of which also includes the national property market, he added.

The government’s present efforts to boost the property sector include the exemption of stamp duty on the transfer of documents for the purchase of a person’s first home up to RM500,000, which will be effective until December 2025.

On another matter, the minister also urged all data suppliers to ensure the data provided to Napic were always accurate and correct.

“Please continue the good working relationship with Napic and the VPSD as the data supplied has a big impact in the future formulation of government policies for the property market.

“I also ask all the others involved, especially the developers, planners or agencies that approve development plans to continue to refer to the data that is being published by Napic, which is accessible through a dedicated portal,” Amir Hamzah said.

Meanwhile, the report said the Malaysian House Price Index stood at 216.5 points or RM467,144 per unit in 2023, with a moderate annual growth of 3.2%.

All major states recorded positive annual growth, led by Johor at 6.2%, Penang at 3.8%, Selangor 2.9% and Kuala Lumpur at 1.8%, the report said.

Meanwhile the performance of shopping complexes witnessed moderate growth in 2023, as the occupancy rate increased slightly to 77.4%.

The available space reduced to four million sq metres, while the availability rate decreased to 22.6%, it said.

Commenting on the property overhang situation, Rahim & Co International Sdn Bhd real estate agency chief executive officer Siva Shanker said he expects the overhang will go down further this year as the market stabilises and improves.

“The biggest cause of overhang units is mainly due to oversupply.”

“A mismatch in location, pricing and developers not meeting the buyer’s demands” are causes of overhang and unsold residential units,” he added.

According to the property market report, the states with the highest rates of residential overhang and unsold units last year were Johor, Kuala Lumpur and Selangor respectively.

Meanwhile, Malaysian Institute of Estate Agents president Tan Kian Aun said the positive reduction in the overhang is a good sign, which shows the vibrancy of the market to be able to absorb the outstanding units in the market.

Tan said the Home Ownership Campaign (HOC) last year showed good progress in the overhang statistics.

“Hopefully the government can consider extending the HOC to further reduce the overhang situation,” Tan told StarBiz.

When asked on the property market’s outlook, Siva said the days of phenomenal growth in the property market are over and he expects a slight growth in the property market for 2024.

Siva noted that “organic growth is a good thing.

“We want a market that is stable and sustainable in the long run as it will not fluctuate with unpredictable highs and lows.”

We choose our own friends, China remains a key ally

‘We do not have a problem with China’: Malaysian Prime Minister Anwar Ibrahim

MELBOURNE: As a “fiercely independent” nation, Malaysia will not be dictated to by anyone over its relations with China or any of its important neighbours, says Datuk Seri Anwar Ibrahim.

“While we remain an important friend to the United States, Europe and here in Australia, that should not preclude us from being friendly to one of our important neighbours, specifically China,” the Prime Minister said.

“We are fiercely independent. We do not want to be dictated to by any force.

“If they have problems with China, they should not impose them upon us. We do not have a problem with China,” Anwar said in a joint press conference with Australian Prime Minister Anthony Albanese during his official visit to the country yesterday.

Asked about how Sinophobia manifested itself and its effect on the region, Anwar replied that Malaysia upholds an “open trading policy to encourage investments from foreign countries.”

“They have levied some criticisms against us for giving additional focus to China. Right now, China seems to be the leading investor in Malaysia.

“Cumulatively, it’s still the United States of America,” he added.

On Feb 27, Anwar had decried “China-phobia” among US and Western allies in an interview with the Financial Times in the United States, questioning why Malaysia would “pick a quarrel” with China, its largest trading partner, in response to US criticism of Malaysia’s ties with Beijing.

“Why must I be tied to one interest? I don’t buy into this strong prejudice against China, this China-phobia.”

Calling China an important neighbour, he said Malaysia would give priority to enhancing relations with Beijing in terms of trade, investment and culture.

Anwar, who is in Australia with his wife Datuk Seri Dr Wan Azizah Wan Ismail and several ministers and leaders, will attend two major programmes – the Malaysia-Australia Annual Leaders’ Meeting and the Asean-Australia Special Summit.

Warm welcome: Anwar shaking hands with Albanese at Government House in Melbourne, Victoria. Looking on is Governor of Victoria, Margaret Gardener. — Bernama

On the Palestinian-Israeli conflict, Anwar lauded the Syrian government for supporting the call for a ceasefire and enhancing media efforts in Gaza.

“The consensus is in calling for a ceasefire and good humanitarian support, and probably avoiding the contentious issues between Palestine and Israel. At least for now, it is to cease fire and provide humanitarian assistance.”

Albanese also reiterated his call to end civilian suffering through a humanitarian ceasefire, the release of hostages, and a two-state political solution for Palestinians and Israelis to live with security and stability.

On the 10th anniversary of flight MH370, which went missing on March 8, 2014, Anwar said Malaysia would not hesitate to renew the search for the aircraft if there was “compelling evidence.”

“We will be glad to reopen (the search) because I don’t think it’s a technical issue. It is an issue affecting the lives of people, and whatever needs to be done must be done,” he said.

Both Anwar and Albanese also agreed that Malaysia and Australia would like to achieve more growth in trade and economic relations, especially in green energy and education.

“There’s a real potential for further institutional investment from Australia into Malaysia as well, with universities and tertiary education being a real prospect.

“Australia remains an important supplier of LNG to Malaysia. We have so much in common in our economies that is quite complementary,” Albanese said.

He also said Australia was focused on this region despite receiving critical commentary about it sometimes.

“We make no apologies for our focus being on South-East Asia in the Indo-Pacific because this is where our future economic prosperity will be determined.

“We’re living in this region, the fastest-growing region of the world. What that presents is an enormous opportunity for both our nations,” he said.

Anwar replied that Malaysia was committed to facilitating all avenues that both countries could explore – including renewable energy, green technology, digitalisation, food security and education opportunities involving top Australian institutions.

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Promise of change slow in coming

 

Accusations of betrayal and unfulfilled promises of reforms have been flying fast and furious but, behind the scenes, efforts are being pursued to realise the pledges made.

Protesters holding yellow signs with phrases such as ‘Don’t get comfortable’ and ‘Clean and fair’ while chanting ‘Tuntut Reformasi, Tolak DNAA, Rakyat Bangkit’.

100 protesters march in Bersih rally for reforms

Bersih rally shows something wrong with Madani govt'

THE Bersih march to Parliament was a sad sight.

Once a powerful voice that was able to flood downtown Kuala Lumpur with a sea of yellow-shirted people, the rally crowd on Tuesday morning was so sparse it was almost outnumbered by police personnel and media people.

Cynics say it is living proof that Bersih was basically a vehicle used by Pakatan Harapan to overthrow Barisan Nasional and that the NGO has been used and discarded like tissue paper.

But Pakatan politicians are the ones who ought to be embarrassed for what some reporters described as “hiding inside” Parliament instead of facing the protesters.

The tables have turned and it is ironic that Pakatan is now on the defensive.

Only six MPS emerged to meet the protesters among them being Sungai Petani MP Taufiq Johari who said his party, PKR, has not abandoned its reform ideals.

“Don’t dwell on the size of the Bersih crowd. It is the message they carry that is important and we support that,” he said.

Taufiq pointed out that Prime Minister Datuk Seri Anwar Ibrahim also spent about 40 minutes in his Parliament office to listen to the Bersih delegation and also to explain that reforms are still his priority.

A year is quite impossible to implement the sky, the moon and the stars that Pakatan had promised during the election campaign.

Tiktok is flooded with videos of Anwar and also Rafizi Ramli slamming the then government over the ringgit and the economy when they commanded the ceramah stage.

Pakatan had promised to “save Malaysia” but businessmen are staggering under the shrinking ringgit.

The government is under pressure and DAP has been labelled as MCA 2.0 for their silence on issues, including the never-ending saga of the Teoh Beng Hock death which the party had used to inflame Chinese sentiments.

It has been a thorny period as the past returns to haunt Pakatan leaders.

Actually, Pakatan politicians said so many silly things on the ceramah circuit and their supporters have only themselves to blame for swallowing everything without chewing.

“To be fair, the unity government is now dealing with a bit of what each party promised because it took a few months for the new partners to find the chemistry of working together.

“But they have not sat down to talk about a combined manifesto, to tell people that this is what we will do as a coalition government,” said lawyer Ivanpal S. Grewal.

Much credibility also went down the drain over the preferential treatment given to the corruption cases of Umno leaders Datuk Seri Dr Ahmad Zahid Hamidi and Datuk Seri Najib Razak.

Ivanpal said that while the average Malaysian is concerned about the rising cost of living, the noise among the chattering class is on issues like equal allocation for the Opposition, political funding and strengthening the judiciary and the Malaysian Anticorruption Commission.

“None of the Pakatan leaders seem to be thinking about how the unity government wants to be perceived in the eyes of the public and Anwar cuts a lonely figure defending his government’s policy.

“The government is failing on the communication front,” said Ivanpal.

Investors and businessmen, said Ivanpal, expect an economic roadmap by now.

The mantra that reform takes time may sound like a lame excuse but legislative reform is not like cooking Maggi Mee.

Also, it is not that the government is doing nothing about it.

“We are working on it and we want it to be properly done,” said Selayang MP William Leong who chairs the Parliamentary Select Committee on Human Rights, General Elections and Institutional Reform.

The government has tackled the low-hanging fruits like laws on sexual harassment, child protection and amendments to the Suhakam Act.

Leong, who was also there to meet the Bersih protesters, said Bersih then under the chairmanship of Thomas Fann was the first NGO that the select committee met in April last year.

This was followed by discussions with more NGOS like Tindak Malaysia, Suhakam, the Civil Society Organisation, Institute for Democracy and Economic Affairs (Ideas) and groups connected to refugee and prison reform.

“Everyone, especially the NGOS, have their pet reforms but we also have to prioritise. I told the NGOS that we are new cooks who have just come into the kitchen and there are 10 pots boiling away on the stove.

“The devil lies in the details. For instance, separating the Attorney General’s Chambers and Public Prosecution cannot happen overnight. We have to look at the legal side as well as the administrative implementation.

“I understand people are impatient that change is not coming fast enough but even when we buy a house, it takes three years to be completed. Let me say this – the changes we promised are on the way,” said Leong.

Anwar has turned out to be more lively than his immediate predecessor Datuk Seri Ismail Sabri Yaakob. He is also less aloof than Tan Sri Muhyiddin Yassin and certainly younger and more energetic than Tun Dr Mahathir Mohamad.

But he is surely aware that the last time ordinary people complained so much about the ringgit and cost of living issues was when Najib was still in charge and that is not a good parallel.

Truth be told, the non-malays had wholeheartedly supported Anwar because they believed they were voting for a more equal Malaysia. It is a painful realisation that the Chinese tsunami could not deliver the New Malaysia they expected.

But time is on Anwar’s side. He has a supportive King on his side and another three years to work on delivering the change.

The Star by JOCELINE TAN The views expressed here are entirely the writer’s own.