[the star] Forecasts Malaysian property prices to rise steeply in the first half of 2024.

Here is an excerpt from an article that sees the Malaysian real estate market positively.


Petaling Jaya: The Real Estate and Housing Developers Association (Rehda) expects property prices to rise significantly in the first half of 2024 (1H24) due to rising costs of building materials.


In Rehda's 2024 2H24 Real Estate Industry Survey and Market Outlook announcement, Chairman Datuk N.K. Tong said construction costs were expected to increase by 15% in the first half of 2024.


He noted that developers have reported that the average price of sand and concrete has increased by more than 10% per year as of Dec. 31, 2023.


In addition, 91% of survey respondents observed a higher rate of increase in building material prices in 2023 than in previous years.


"Building materials are always a concern, and costs continue to rise. We hope this will be resolved effectively, and we hope that all industry players will play a role in ensuring that Malaysians are no longer affected by price increases," he said.


In this regard, Tong said participants in the real estate industry remain neutral on the economic and business outlook for the first half of 2024, with a more optimistic view in the second half.


"This is understandable given the challenges facing the industry, but the high optimism towards the end of the year shows that respondents and the vast majority of developers still have faith that the market will improve," he said.


The outlook is consistent with optimistic forecasts for the domestic economic environment, business outlook, consumer purchasing power and residential sector growth, it said.


He said developers' optimism for the second half of 2024 was a positive sign for the market, and that the Malaysian real estate sector will remain strong as long as the world and the country's economy stabilizes.


Real estate developers saw a noticeable increase in overall sales in 2023. However, more than 60% of units remained unsold, with only 39% of the new units released in the second half of 2023.


52% of respondents reported that residential units completed as of December 31, 2023 were unsold, with most of the unsold units being service residences, followed by row houses and condominiums.



the original text of an article : https://www.thestar.com.my/business/business-news/2024/03/15/property-prices-to-rise-significantly-in-1h24