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The Sun
6 days ago
- Business
- The Sun
US tariffs – Short-term shock, long-term opportunities for Asean real estate industry
KUALA LUMPUR: While the US reciprocal tariffs announced on April 2 have unsettled equity markets and export-driven sectors, property leaders believe the disruption could accelerate the adoption of digital technologies, sustainable construction practices and regional trade integration within Asean's real estate landscape. During a panel discussion titled 'Industry Countermeasures: Absorbing the Recent US Tariff Shockwaves' at the Asean Real Estate Conference and the Architecture, Interior Design and Building Exhibition 2025, three prominent figures – Real Estate and Housing Developers' Association (Rehda) president Datuk Ho Han Sang, PropertyGuru Group's head of real estate intelligence Dr Lee Nai Jia and United Overseas Bank senior Asean economist Enrico Tanuwidjaja – said that while the new US tariffs – which are scheduled to go into effect on Aug 1 – bring short-term uncertainty, they also present potential long-term opportunities for the industry. Ho said Malaysian developers are bracing for softer demand in industrial, commercial and high-end residential segments as exporters negotiate who will absorb the higher costs. 'Profit margins will be squeezed as importers and exporters split the burden,' he told the audience. 'With higher prices, purchase volumes will drop and investors will be more cautious. Slower sales mean cash flow problems, and cash flow is reality; without it, there is no oxygen.' Ho noted that while most construction inputs are locally sourced, imported steel, aluminium and glass may see price pressure if the ringgit weakens. The first sectors to feel the pinch, he said, will be export-driven industries scaling back factory expansions, reducing office space needs, and curbing retail growth. Yet he also flagged bright spots. 'Tariffs on Chinese goods could redirect manufacturing to Asean, and a weaker ringgit may attract buyers from Singapore, Hong Kong and Taiwan into projects like Penang Silicon Island or the Johor‑Singapore Special Economic Zone.' Lee observed similar patterns across Asean. Using PropertyGuru's platform data, he described a three‑stage reaction: initial shock, quick normalisation and preference recalibration. 'After the announcement, views on listings in Singapore plunged, while Malaysia and Vietnam saw smaller dips,' he said. 'But people quickly remembered that housing is a long‑term need. What changed is their behaviour where buyers are gravitating towards more affordable, value‑driven homes.' He highlighted Singapore's Linton Woods project, which sold 94% of units despite tariffs, thanks to its proximity to transport and employment hubs. 'Integrated developments are resilient,' Lee said. 'The key is offering value and convenience.' He added that confidence in governance, stemming from Vietnam's policy reforms to Malaysia's interest rate cuts, continues to underpin the region's housing markets. From a macro lens, Tanuwidjaja said the tariffs underline Asean's need to boost internal trade and reduce dependence on external markets. 'Intra‑Asean trade is only 17%, compared to over 40% in the EU,' he said. 'We need to integrate, use local currency settlements, harmonise regulations and build supply chains that loop within the region.' While describing Asean as 'resilient', he warned that volatility will persist throughout the current US administration: 'Businesses must plan for turbulence, not a quick fix. The next midterm election in 2026 is the next real pivot.' He also urged governments and developers to prepare for technological disruption. 'AI will transform customer service, marketing and operations. We must retrain workers for higher‑skill roles like architecture, design thinking, project integration, because low‑skill roles are most at risk.' All three panellists stressed innovation as a pathway through the turbulence. Ho highlighted Integrated Digital Delivery (IDD), a platform that digitally unites 180 industry stakeholders to cut errors and speed approvals, as a game‑changer already deployed in Singapore. 'IDD minimises waste and aligns everyone from engineers to regulators,' he said. 'Speedier approvals, like Penang's recent 36‑day affordable housing clearance, reduce costs and help projects move despite headwinds.' Green technology also surfaced as a competitive advantage. Lee pointed to Vietnam's success in renewable energy during the first trade war. 'This is our chance to lead with climate‑sensitive design and ESG frameworks tailored to Southeast Asia's climate,' he said. Looking beyond domestic markets, Ho urged Malaysian developers to revive their overseas promotion campaigns, targeting buyers from Hong Kong, China, and Singapore. 'Our products are internationally recognised and competitively priced by Asean standards,' he said. 'With stable governance and award‑winning townships, Malaysia can stand out.' Tanuwidjaja echoed the sentiment: 'The higher tide will lift all boats but only if Asean rows together.' While uncertainties remain, the panel's tone shifted from caution to resolve. The tariffs, they argued, could catalyse Asean's next phase of growth by forcing integration, accelerating digital tools and prioritising sustainability. 'If you don't change, you'll be changed,' Ho said. 'This is the moment for our industry to reinvent and emerge stronger.'
Sinar Daily
18-05-2025
- Business
- Sinar Daily
PropertyGuru survey reveals 77 per cent of Malaysians consider climate risks when buying homes
83 per cent 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. 18 May 2025 09:00am Areas like Kota Emerald, Rawang, Selangor; Kuah, Langkawi, Kedah; and Ulu Kelang have recorded more than 100 per cent year-on-year search growth, driven by affordability and value. - Bernama file photo KUALA LUMPUR - Data from PropertyGuru's 2024 survey revealed that 77 per cent of Malaysians consider climate risks when purchasing a home. PropertyGuru Group head of sustainability Cecile Corda said the company views community safety and well-being as increasingly at risk due to the rising frequency of extreme weather events, which significantly affect properties. "That is why we have embedded climate risk analytics into our platform,' she said at a media briefing here recently. As part of the Malaysia survey, Corda said PropertyGuru provides historical disaster data, such as records of past floods and landslides, to help guide informed decision-making among homebuyers. "We are also partnering with an intensive climate risk provider to deliver advanced modelling and climate risk assessment,' she added. PropertyGuru released its 'Sustainability Report 2024' from a survey conducted in the second half of 2024, with responses from 1,181 Malaysians. With nearly 63 per cent of the total population of Southeast Asia expected to live in urban areas by 2050, the report outlines how PropertyGuru is leveraging data, digital tools, and strategic partnerships to drive positive impact across the housing ecosystem. According to the survey, 83 per cent 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 of the property market. Meanwhile, PropertyGuru Malaysia country manager Kenneth Soh said areas like Kota Emerald, Rawang, Selangor; Kuah, Langkawi, Kedah; and Ulu Kelang have recorded more than 100 per cent year-on-year search growth, driven by affordability and value. "Our data shows a clear shift in where Malaysians are searching for homes. This reflects a growing concern among buyers, especially those aged 25 to 34, 60 per cent of whom believe prices will continue to rise. "To meet this demand, the industry must not only keep affordability in focus but also rethink how sustainable features can be integrated into mid-market and rental segments,' he added. Moreover, Soh emphasised that the future of housing in Malaysia hinges on how quickly policymakers and developers can make sustainable living a realistic option for the majority, not just a premium few. "PropertyGuru remains dedicated to playing its part by equipping home seekers and industry stakeholders with actionable insights, promoting inclusivity in housing, and supporting initiatives that help make sustainable living more accessible to all,' he added. - BERNAMA More Like This
The Sun
14-05-2025
- Business
- The Sun
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.
The Sun
14-05-2025
- Business
- The Sun
Property demand in Malaysia proves 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.
New Straits Times
14-05-2025
- Business
- New Straits Times
Mismatch in affordable housing driving property overhang, says PropertyGuru
KUALA LUMPUR: A persistent mismatch between supply and demand in Malaysia's affordable housing segment, especially for units priced below RM300,000, remains a key driver of the country's residential property overhang. PropertyGuru Malaysia country manager Kenneth Soh noted that the issue extends beyond pricing, with factors such as location, connectivity, and overall liveability playing a significant role. "The mismatch is more prevalent in the lower-priced market. We have spoken to government agencies and associations, and what we found is that pricing alone doesn't determine demand. "A property might be affordable but not appealing if it is too far from key amenities or located in areas with heavy traffic, making the total cost of ownership higher in other ways," he said during PropertyGuru Group's 2024 sustainability report launch & market outlook briefing today. Kenneth noted that based on transaction figures, homes priced below RM500,000 continue to dominate in terms of volume, indicating strong demand in this segment. He emphasised that for industry players, the key takeaway is that regardless of price, everyone should have access to safe, comfortable, and well-connected housing. "Buyers today also consider more than just price, and that is where a lot of the mismatch happens — in how we align what is offered with what people actually want and need," Data from the Valuation and Property Services Department (JPPH) shows that residential properties priced below RM300,000 recorded the highest overhang by price category, with 7,135 unsold units representing 30.3 per cent of total overhang. Homes priced between RM300,000 and RM500,000 followed closely, with 6,813 units making up 29 per cent, while those in the RM500,000 to RM1 million range accounted for 28.6 per cent, with 6,713 units unsold. In contrast, properties priced above RM1 million had the lowest share, comprising 12.1 per cent of the overhang, with 2,854 units remaining on the market. Commenting on the market outlook, Kenneth said that although there was a decline in property data for the first quarter of 2025 (1Q25), the overall trend since the post-Covid reopening has been steadily improving. "We have seen quarter-on-quarter and year-on-year growth. I don't think, at least from our point of view, this one data point is not yet a particular red flag. The recent dip could be due to seasonality or other factors in the market. It is a fairly stable landscape, with different hotspots showing varying dynamics. "If you look at Johor, there is a rising sense of optimism. This is largely driven by positive developments in the area, supportive policies, and spillover effects from Singapore. In Kuala Lumpur, the market appears more stable, with demand and supply relatively balanced. Similarly, in Penang, the overall outlook remains steady," he said. Findings from PropertyGuru's 2024 survey reveal that 83 per cent of Malaysians are open to paying a premium for homes with sustainable features, valuing benefits like lower utility bills, better climate resilience, and long-term value preservation. PropertyGuru Group head of sustainability Cécile Corda, said the demand for sustainable and inclusive houses has been growing. "By equipping property seekers and real estate stakeholders with the tools to make informed, sustainable choices, we're helping to build cities that are not only resilient but grounded in principles of inclusivity," she said.
