News by Dr Foo Chee Hung

Figures on gross domestic product (GDP) provide a snapshot of the overall economic activity within a country by aggregating the value of all final goods and services produced.

The Malaysian property market is said to have performed exceptionally well in 2024, with the total value of property transactions hitting a record high at RM232.3 billion, and the total volume of property transactions reaching 420,545, regaining the momentum of 2011.

In many countries, the government plays a leading role in providing affordable housing, either directly through the construction and management of public or social housing or indirectly through subsidising the private sector to build affordable housing.

Under the Valuers, Appraisers, Estate Agents and Property Managers Act 1981, personnel and/or companies that manage property and/or buildings, be they residential or commercial, are property managers (PMs) who are required to be registered with the Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEP).

Over the past decades, as Malaysia undergoes a major transformation from an economy largely dependent on agriculture and commodities to a more robust industrial and service-oriented economy, the country’s major cities are also experiencing a rapid proliferation of high-rise developments, with new residential, commercial and mixed-use towers reshaping the urban skyline.

A higher concentration of urban population not only generates more interactions, exchanges and business opportunities, but also promotes creative thinking, knowledge spillovers, new ideas and technology developments, leading to a higher economy of scale and wealth agglomeration.

Countries are looking for alternatives to address this pressing issue; and designs that favour walking, cycling and public transport are perceived as effective strategies.

The Ministry of Local Government Development (KPKT) has voiced its intention to have exchange sessions with Singapore’s experts to help solve Malaysia’s affordable housing woes.

In fact, this is not the first time KPKT attempts to study and incorporate the Singapore’s pubic housing model within the local context. Back in 2018 during the Pakatan Harapan’s administration, the then KPKT minister conducted a three-day official visit to Singapore to learn the developments, plans, history and background that drive housing developments there.

How much room for investing opportunities are there in the Malaysian housing market in the post-Covid-19 era? Let’s find out.

As long as the rate of supply outpaces the rate of demand, there should be no shortage of affordable houses across the state. Instead, what should be of more concern is the overbuilding of price-controlled social houses, with a high number of unsold units, low take-up rates and low marketability.