KUALA LUMPUR (June 26): Putrajaya’s policies have the potential to create a positive environment for the local property market but they will depend on how effectively they are implemented.
“By fostering economic growth, attracting investment, and potentially improving affordability, this could lead to increased demand for various property types. However, this will depend on the implementation details and how different sectors of the economy respond,” said PropNex Malaysia CEO Marcus Teng.
He explained that if the government can successfully increase household incomes, it could improve affordability for first-time homebuyers. However, the government might also need to address issues like rising construction costs to ensure long-term affordability.
“Increasing economic activity and luring investment is one of the Madani government’s main goals. The demand for housing may increase as a result, especially in places with promising job opportunities,” said Teng.
Infrastructure development involving regional businesses could entail funding for infrastructure initiatives such as industrial zones or transportation networks.
“These kinds of projects can establish real estate hotspots close to these regions, increasing demand.”
Teng uses the example of the upcoming Google data centre. “Google’s data centre likely requires significant infrastructure investment, potentially including improved transportation networks and utilities. This can make surrounding areas more attractive and convenient for residents, further boosting property values.”
Commit within your affordability level
On a micro level, the PropNex Malaysia CEO also has pointers for the individual property investor.
“Look for a matured or potentially hot spot townships with the surrounding developments ongoing or up and coming public infrastructure, amenities, education centres. Have a clear objective within the timeline, to either hold for mid or long term,” he said.
“Commit within your affordability level despite market volatility or fluctuation. Also, be wary of the potential buyer to take over the property in view of the product size and design within the development concept – are they professionals, young entrepreneurs, first-time homeowners or upgraders?”
And if you are looking to invest in property, PropNex Malaysia is hosting the Malaysia Property Xpo 2024 on June 29 and 30 at Four Points Sheraton Hotel Puchong, Selangor.
Its inaugural property expo promises to be a landmark event for consumers and industry professionals alike.
As the official media partner for the Malaysia Property Xpo 2024, EdgeProp will have a dedicated booth at the expo. Visitors to the EdgeProp booth will get to participate in games throughout the two-day event and take home amazing prizes. On top of that, those who sign up for EdgeProp START during the event will stand a chance to win the RM10,000 Cash Bonanza lucky draw and walk away with additional rewards.
Meanwhile, how has the market developed compared to when Teng started his career?
“Back in 2000, the market was generally in a positive phase in many regions, globally. Interest rates were also coming down from the high rates of the 1980s and early 1990s, making homes more affordable. The gradual reduction in the cost of borrowing created a period of rising property prices in many areas. Thereafter in 2009-2015, there was a bull market due to rapid local and global economic growth while the government strongly promoted the property sector.”
Building leaders before building a business
The current market environment it is still very dependent on location. “In many places, prices continue to rise due to scarcity of strategic locations and cost push inflation such as labour and material costs, though perhaps at a slower pace than the early 2000s. However, the number of unsold completed units have been gradually falling due to reduced new launches. Some regions might have experienced a cooling down or even a slight decline.”
As for PropNex Malaysia, Teng said that “our company philosophy is to build leaders before building a business. Therefore, our business model is growing concurrently personal and team career achievements”.
For more information and to register for the Malaysia Property Xpo 2024, please visit https://expo.propnex.com.my/.
Source: EdgeProp.my
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