PETALING JAYA: Savills Malaysia reiterated that 2018 is bound to be a remarkable year as far as the Malaysian property market is concerned. This is because the new government has been seen addressing some of the institutional problems that have held back Malaysia’s long-term prospects and deterred foreign investment.
According to Savills:
Residential Market
- Prices of residential units will firm up in 2019.
- In early 2020, developers are expected to respond by stepping up supply.
- In short, particularly in Greater KL and Penang, there has never been a better time to buy.
Office Space
- In the short term, more potential upgraders will see their way clear to invest in a move to new premises.
- In the medium term, new office take-up will increase in tandem with a growing economy and more foreign direct investment.
Savills Malaysia chairman Datuk Christopher Boyd opines that abolition of GST will not have any meaningful impact on office rentals.
Retail Sector
- Retail turnover will pick up in areas where GST is lifted from merchandise, and not replaced by a sales tax.
- Luxury goods will fall into that category and make Malaysia a major tourist shopping destination.
Savills Malaysia deputy executive chairman Allan Soo opines that the groceries, food and beverage as well as mass prestige fashion brands will see a positive impact from the lifting of the GST.
Industrial Sector
- The prospects for the industrial and logistics market are very positive.
Savills Malaysia managing director Datuk Paul Khong believes that renewed market confidence will boost foreign direct industrial investment.
The Investment Market
- A major uplift in domestic and foreign interest in commercial investment properties.
- Malaysia has extremely liberal policies related to foreign investment in commercial property and can offer attractive yields.
- The prospects of appreciation in the Ringgit and strong economic growth will now make Malaysia an outstanding regional investment opportunity.
