Malaysia’s real estate comeback for Selangor and Johor

Malaysia’s real estate comeback for Selangor and Johor

My view of Selangor and Kuala Lumpur?

I stay in Selangor today and my children are studying in Kuala Lumpur. I am of the opinion that both Selangor and Kuala Lumpur continue to see a steady growth in the property transaction numbers. In my conversation with a real estate agent (who’s about to get her REA in 1 year, maybe), she shared that her focus is now on properties which are priced from RM500,000 to RM700,000 because that seems to be the sweet spot right now.

For properties which are below the RM350,000 category, there are usually many rejections of loan application from the banks. I think this is good news yeah. Banks are not simply approving every loan application. I would be very scared if she told me that the banks are approving every loan application for buyers of affordable homes.

Let’s look at some facts and numbers from PropertyGuru Asia Real Estate Summit article on both Selangor and Johor.

Article here: asiarealestatesummit.com Selangor and Johor is Malaysia’s real estate comeback.

Selangor’s residential sector as a whole was the best-performing market last year in Malaysia and is shaping up for another good year in 2024.

In 2023, it contributed to nearly 63 percent of total sales, which amounted to 250,586 transactions worth MYR100.93 billion (USD21.3 billion), a year-on-year increase of three and 7.1 percent, respectively, according to Knight Frank’s executive director of research Amy Wong.

Selangor led the market with 22 percent of those transactions and 30% of the value. The state has seen a flurry of new launches of townships in recent years while Kuala Lumpur has not, Wong related.

Johor was the second-best performing state for residential real estate transactions and value last year, accounting for 16.2 and 18 percent of the total, respectively. Please do refer here for the full article: Article here: asiarealestatesummit.com

Selangor, Johor are growing above the national growth rate

Property Market will be vibrant as long as the economy continues to grow

When there are demand for goods and services, there will need to be the production of these goods and offering of these services. Whether production or the services, manpower is needed. In other words, more people will have a job, have a salary and has the money to buy more goods and services. This is how the economic activity will generate the demand for properties.

When more people move to bigger cities or major industrialised states for work, they will need to have a roof over their head. If they rent, someone has to buy the unit to rent to them. If they buy, someone has to sell their unit or property developers would have to build more units. I think it’s fairly safe to assume states such as Selangor and Johor will always be leading the growth in the property market. Both are substantially larger than all other states where economic growth is concerned. Perhaps it’s time that you can think about a property in Selangor or Johor too. Happy evaluating and deciding.

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