PETALING JAYA: The Malaysian property market is expected to stabilise in 2024 despite economic uncertainties, with certain areas and submarkets positioned for more robust growth.

PropertyGuru country manager Sheldon Fernandez said there is also a high possibility of a temporary shift in buyers’ interest towards the rental market as housing unaffordability continues.

“Opportunities exist for homeowners and sellers within certain hotspots and areas with underserved demand.

“This, coupled with easing inflation and targeted government initiatives to support homebuyers, offers the promise of a more balanced market,” he said during the PropertyGuru property market outlook 2024 webinar.

Though challenges persist, he said PropertyGuru maintains a cautiously optimistic outlook on the property market.

Moving forward, PropertyGuru foresees several trends that will impact the Malaysian property sector this year, such as sustainability and inclusivity in the local property market.

“Developers should consider consumers’ lifestyles and interests when planning housing projects, as higher property prices will lead to house seekers having more considerations for their first home.

“Aside from increased interest in sustainable projects, developers are collaborating with banks to address social objectives, such as gender equality and the advancement of women’s rights, and we expect this to continue in 2024,” he said.

He also said the property overhang situation will likely continue to improve this year.

“Last year, the government committed to tackling the long-standing property overhang issue, establishing a special task force to identify and investigate sick and abandoned housing projects, and we are currently witnessing improvement in this matter,” he said.

Fernandez said targeted government initiatives, including the Housing Credit Scheme where the allocation was increased to RM10 billion under Budget 2024, could help alleviate homeownership costs for homebuyers.

“In light of expected moderate economic growth, we urge the government to address wider challenges like the cost of living and stagnant income.

“Tackling these issues is crucial to stimulate demand and revitalise the market,” he added.