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KUALA LUMPUR: Savills Malaysia sees the overall property market in the country “to be a direct extension of 2022” and that the bumpy ride will move into 2023 but with a stronger positive bias.
In a statement, Savills said with the new government, hopefully, there would be better support for a strong landing.
Breaking the property market into different sub-sectors, the statement said older offices and retail properties are “likely to struggle” while newer properties in the industrial, logistics and data centre segment will “continue to be in the limelight” of market activities.
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Group managing director/head of Savills Malaysia Datuk Paul Khong said the consultancy awaits Budget 2023 with anticipation for measures to rejuvenate the entire sector and not just goodies for those in the Bottom 40.Nonetheless, he acknowledged that construction costs and higher loan rates have dampened the real estate sector and the overall domestic economy.
“We have seen a major cost-push (effect) on new developments. These new products will eventually result in a higher price tag,” the statement said.
In the residential property segment, the statement said demand would be “resilient” and this would be evidenced by improving sales in the first to the third quarters of 2023. — Bernama
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