The residential real estate market in Malaysia is headed for a post-pandemic rally over the next 12 months, according to the just released Juwai IQI Malaysia Property Survey and Index Q3 2022.

“We surveyed real estate agents around Malaysia,” said Juwai IQI Co-Founder and Group CEO Kashif Ansari. 

“They tell us prices and rents are likely to increase significantly over the next 12 months. In that scenario, people who own their own homes will benefit from the increasing values, while those who rent or are seeking to buy will have to continue to raise their budgets."

Perhaps because of the expected increase in prices, nearly nine out of ten of the surveyed real estate agents also said they believe it is better to buy today than rent. 

“This data suggests to me that agents expect renters to face rate increases over the next 12 months and for home prices to correspondingly rise. Those who buy now would be spared from these pressures.

“When you look at who has the biggest opportunity here, you see that slightly more than one-third of Malaysians aged 20 to 39 are renters. That's the highest percentage of renters of any age group.”

Ansari said agents are bullish on the real estate market because they are overwhelmingly optimistic about the economy. Forty-five per cent of agents believe the economy will be stronger during the next six months.

Malaysia’s central bank supports the positive outlook. Bank Negara Malaysia believes the Malaysian GDP growth could hit 6.3%. The reopening of international borders and government investment projects will boost this economic activity.

“Malaysia's first quarter GDP growth rate of 5% was high by global standards,” Ansari said. “That is faster growth than in China, the USA, and other major economies. We have gotten used to thinking of China as the fastest growing economy in the world, but it's not that way in 2022. Malaysia is now growing more quickly than China.”