2023-01-11-莱坊-Malaysia_Real_Estate_Highlights_2H_2022_28页_10mb

Malaysian Real Estate Market Analysis Summary: 2H2022

Overview

The second half of 2022 saw a moderate recovery in Malaysia's real estate market, driven by border reopenings, improved economic conditions, and policy support, though challenges included inflation, higher interest rates, and supply-demand mismatches. Full-year 2022 growth is expected to exceed previous forecasts due to robust transactions and elevated property investments.

Residential Market

• Kuala Lumpur: High-end condominium market declined slightly from September to October 2022 due to project completions, adding 3,059 units; prices ranged from RM985 to RM1,590 per sq ft for rentals and transacted values from RM780 to RM1,080 per sq ft. New projects like The Peak Damansara Heights and The Ria showed cautious buyer interest despite uncertainties.
• Penang: Approved manufacturing investments doubled, with retail sales growth at 45.9% year-to-date. High-rise residential market improved, with new launches attracting foreign buyers post-border reopenings; prices stable, rentals steady.
• Johor: Residential market subdued, with slow new launches; high-rise supply under the "overseas investors" scheme gained traction near Singapore. Landed properties remain strong in established areas.
• Kota Kinabalu: Increased transactions and launches; residential supply at 133,840 units, with steady absorption; rentals between RM1.10 and RM3.85 per sq ft monthly.

Commercial Markets

• Office Market: Klang Valley office rentals declined (KL City: RM6.41 per sq ft/month), but demand remains strong in Grade A buildings. Penang's office occupancy stable at 86-100%, with new tenant entries supporting growth. Johor Bahru's office market recovering post-pandemic.
• Retail Market: Shopping centers saw recovery in footfall, especially after border reopenings. High-end malls like IOI City Mall expanded, with new F&B and specialty stores; rentals marginally higher in KL and Penang.

Industrial Market

• Overall industrial investment surged, with launches in logistics, manufacturing, and data centers, particularly in Johor and Penang, benefiting from nearshoring trends. Supply anticipated to outpace demand in some subsectors, with rentals resilient.

Outlook for 2023

The market faces inflationary pressures and potential economic slowdown, but attracts investments through sustainability initiatives and ESG alignment. Foreign capital flows may continue, bolstered by government incentives, though caution is recommended due to tightening monetary policies and geopolitical risks.

Based on market data from sources including Knight Frank Research and Bursa Malaysia.