KUALA LUMPUR: Significant growth in the property market has positively influenced the outlook of Malaysia’s economy, says Housing and Local Government Minister Nga Kor Ming (pic).
He said the property development sector is intricately tied to the country’s economy and data from the National Property Information Centre has revealed that total transaction volume has risen by 8%, with 198,906 units sold.
“The total value of these transactions has improved by 23.8% to RM105.65bil compared to the same period in 2023,” Nga said.
“This growth is attributed to various government initiatives and the central bank’s decision to maintain the Overnight Policy Rate, creating a favourable environment for property purchase.”
He said Malaysia’s economic growth has surpassed expectations, recording a 4.2% increase in the first quarter and 5.9% in the second quarter of this year.
“Our currency has strengthened against the greenback, reaching a 4.1 level, its best quarterly performance over the past 50 years,” he said in his opening speech at the Malaysia Developer Awards (MDA) gala night.
Nga, who was the guest of honour, said he is pleased to see many developers stepping up to meet the increasing demand for affordable properties through well-planned projects in strategic locations.
“While we have skyscrapers and modern buildings in urban areas, we also need to address dilapidated areas that need to be redeveloped and revitalised.
“Our urbanisation rate is currently at 78% and is expected to rise to 84% by 2040.
“The number of unsold completed properties is also in decline, with a total of 22,642 overhang units worth RM14.24bil recorded in the first half of 2024, down 12.3% in volume and 19.5% in value as compared to the same period in 2023,” he said.
On Budget 2025, Nga said the boosted allocation of RM5.934bil for his ministry highlights its key role in driving government policies aimed towards better living standards and quality of life for Malaysians.
“The budget is impressive, progressive, inclusive, sustainable and aligns with the Madani economy framework. It has the potential to reduce the fiscal deficit from 6% in 2022 to 3.8% next year.
“The reforms proposed are also expected to enhance government revenue by reducing leakages and wastage,” he said.
The MDA, a collaboration between FIABCI Malaysia and Star Media Group Bhd, aims to set a definitive benchmark for excellence in the property development landscape.
