Demand in Malaysian property market shows strong resilience: PropertyGuru
KUALA LUMPUR: Demand in the Malaysian property market has proven resilient, bouncing back swiftly after a dip triggered by the US tariff announcement.
According to PropertyGuru country manager Kenneth Soh, consumer searches and inquiries briefly declined following US President Donald Trump's tariff move, but the market quickly regained momentum – highlighting strong underlying confidence among Malaysian property seekers.
'As the situation evolves, we are seeing a diminishing immediate impact on overall consumer search behaviour.
'Looking at the sector as a whole, it has consistently shown strong resilience,' Soh told reporters at the PropertyGuru Group 2024 Sustainability Report launch and Market Outlook briefing today.
He said search volumes on the PropertyGuru platform grew consistently from January to April, showing that demand in the market remained resilient. 'There is still growth in purchase and rental markets as well,' he added.
Soh said sound policies from the government and Bank Negara Malaysia have contributed to a more robust property ecosystem.
'For instance, Bank Negara Malaysia has helped build a stronger financial ecosystem. Our interest rates remain stable, banks are prudent in evaluating loan applications, and we have a solid credit scoring system. As a result, borrowers who do secure loans generally have a high repayment rate.'
He added that Malaysia's credit environment is strong, with a high proportion of borrowers able to service their loans.
'All the market signals show that we are not in a problem,' Soh noted.
He said demand is driven by locals and first-time homebuyers, as well as returning foreign investors with sustained interest in both residential and commercial properties.
'We are still seeing a strong pool of investors, with certain hotspots attracting more attention than others. Foreign investors are also making a comeback,' he said.
'Singapore continues to be a major source of foreign buyers, particularly in Johor. In Kuala Lumpur and Penang, we are also seeing renewed interest from other countries, including buyers from China,' Soh said.
However, the bulk of the demand is still from locals and first-time homebuyers.
'Locals are just searching for a home. The bulk of the searches are still primarily for residential purposes. First-time homebuyers. The majority of searches are for residential properties, especially in the sub-sale market, where supply is higher.'
Furthermore, Soh said there is renewed interest in property as an investment, not just for people buying homes to live in. 'We actually see the interest in property and investment go beyond just residential as well, commercial as well. We see that is also a growing trend.'
On sustainability, according to insights from PropertyGuru's 2024 survey, 83% of Malaysians are willing to pay a premium for a home with sustainable features, prioritising benefits such as reduced utility costs, improved climate resilience and long-term value retention.
With 32 million monthly visits from property seekers and 50,000 active real estate agents across the region, PropertyGuru delivers new platform innovations and data-driven insights that directly address pressing challenges in the property market.
Demand for sustainable living is growing in Southeast Asia, with 77% of Malaysians factoring in climate risks in their homebuying decisions, according to the survey.
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