Lee (fifth from left) taking a group photo with the speakers and representatives from HLIB and Bursa Malaysia.
KUALA LUMPUR: Malaysia's property sector is at a pivotal juncture, marked by promising growth yet tempered by ongoing challenges. According to the National Property Information Centre (Napic), property transaction values reached a five-year high of RM105.65bil in the first half of 2024, reflecting a remarkable 23.8% year-on-year increase. This growth, combined with a 12.3% reduction in the residential overhang, signals a recovering market driven by improving demand and affordability.
Additionally, government initiatives, such as tax reliefs for first-time homebuyers announced in Budget 2025, and stable mortgage rates supported by a 3% OPR, are fueling optimism. However, rising living costs, inflationary pressures, and high unsold inventories remain significant hurdles to full market recovery.
In the opening address at the 18th Bursa-HLIB Stratum Series, titled Property Sector: Entering A New Cycle?, Hong Leong Investment Bank (HLIB) group managing director and chief executive officer Lee Jim Leng, emphasised the sector's resilience and adaptability amidst adversity.
“Affordability remains a key element in determining the sector's future outlook. In 2025, we expect higher wages for civil servants and the introduction of a higher minimum wage in February to increase disposable income, catalyzing demand for properties across the country. This, coupled with the current 3% OPR and stable mortgage rates, creates a favourable environment for both homebuyers and investors, making homeownership more accessible,” said Lee.
She added: “At HLIB, we believe that a stable employment growth rate and a projected GDP growth of 4.9% this year will keep the economy on firm ground. These positive indicators provide the right conditions for sustained growth and a virtuous cycle of demand and investment that contribute to Malaysia’s broader economic development. While these are promising signs, it is necessary for continued innovative strategies and collaboration within the industry to address ongoing challenges.”
The event featured an impressive lineup of speakers, including:
- Napic deputy property index division director Sarmila Husain
- Knight Frank Malaysia executive director Amy Wong
- Gamuda Bhd deputy project director Tan Jun Jing
- SP Setia Bhd deputy president Datuk Yuslina Mohd Yunus
The speakers provided diverse insights into the evolving property market, addressing key market shifts, demand drivers, investment opportunities, growth trends, potential risks and strategies for recovery. A standout presentation was delivered by Tan, who highlighted the Silicon Island Development in Penang — a visionary project exemplifying innovation and sustainable urban living.
The sector’s optimistic outlook is further bolstered by initiatives outlined in Budget 2025. Among these are tax reliefs of up to RM7,000 for first-time homebuyers purchasing properties priced up to RM500,000, and up to RM5,000 for homes priced between RM500,000 and RM750,000. These measures aim to stimulate demand, facilitate market recovery, and promote long-term growth by enhancing accessibility to homeownership.
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