PETALING JAYA: The real estate market is expected to take another 12 months to recover against the backdrop of an uncertain environment due to the Covid-19 pandemic, as well as the impending 15th general election which would influence investor confidence and security. revenues, according to Rahim & Co. research director Sulaiman Akhmady.
“Before the pandemic, there are also unresolved issues that need to be addressed, such as real estate overhang as well as affordability in terms of income levels,” Sulaiman told media during the property market outlook briefing. 2022 from Rahim & Co yesterday.
“We won’t be surprised if the market improves by the end of this year or early next year after getting clarity on national policies.”
Based on that, he thinks the property projection won’t see much of an increase over the next two years. After that, it might pick up before returning to the long-term growth trend of around 5%.
“The days of double-digit growth expectations where people want to rock 20% returns are long gone. We have to wait for the next market rally for that to happen.
CEO of the estate agency’s real estate company Siva Shanker agreed with his colleague’s view.
For this year he expects to see growth and the market will enter positive territory but realistically the growth in 2022 will be really low.
“It’s a flat curve, but any curve is better than a negative curve. We’ve had two years so bad in terms of Covid-19, it can’t recover quickly. Instead, it will be progressive,” Siva said.
However, in the coming years 2023 and 2024, he expects the market to grow.
The estate agency’s CEO said there had been a clear indication of growth as developers became more aggressive in land banking activities – a trend he has seen repeatedly over the years.
“Whenever the market is down and there’s a sign it’s going up, developers will rush to the pitches,” he explained.
For the first half of 2021, the company’s annual report Rahim & Co Research – Property Market Review 2021/2022 noted an increase of 21% in volume and 32.1% in value year-on-year (yoy ) out of 139,754 transactions worth RM62.01. billion.
The report attributes the increase to the effect of pent-up demand and delayed transactional formalizations from previous quarters that had been delayed and supported by Bank Negara Malaysia’s accommodative policies.
However, the following Q3’21 was hampered by the full movement control order, which resulted in a more subdued overall performance for the first 9 months of the previous year, resulting in 201,065 transactions. ‘worth RM98 billion, translating to a slight decline of 1.8. % in volume but a notable increase of 21.4% in value year-on-year.
In addition to the market situation, Rahim & Co Executive Chairman Tan Sri Abdul Rahim Abdul Rahman revealed that he was finalizing an affiliation agreement with UK estate agency Chestertons, which has a network of over 100 offices across Europe, North America, the Middle East, Africa and Asia.
“This development represents the next step in Rahim & Co’s growth in real estate spanning residential, commercial, industrial as well as property management and consultancy services globally,” he said.
Thanks to this affiliation, the real estate company will be able to use the connection of Chestertons all over the world.
“This international affiliation is very important as we will not only serve Malaysian investments abroad, but also international investors to invest in the Malaysian property market.”
Abdul Rahim said the deal is expected to be finalized in early March 2022.