Following the historic conclusion of Malaysia’s 2018 General Election coupled with the strong growth momentum of the economy; there are clear signs of improvement as more clarity in the policies of the newly elected Government unfolds.

Moving into 2H 2018 and beyond, Knight Frank expects the property market is expected to pick up with more enquiries and investment activities.

Knight Frank Malaysia's latest research report, Real Estate Highlights First Half of 2018 highlights the property trends and outlook in key markets of Malaysia. 

• Industrial Market - The active participation of key industrial and logistics players, both local and foreign, bodes well for the local industrial property market, aligning with Malaysia’s need for better quality warehouses and state-of-the-art factories.  
• Office Market - The KL Fringe office market was resilient in 1H 2018 with both rental and occupancy levels holding firm despite the oversupply of space in certain locations in Klang Valley.
• Retail Market - The 1H 2018 continues to see developers and operators of selected shopping centres embarking on asset enhancement initiatives (AEIs) to address challenges in the retail landscape and to continue attracting shoppers and tenants alike. 

Residential Market

Market sentiments have improved in the residential market during 1H2018, especially after the general elections. Kuala Lumpur, being the capital city, remains one of the well-liked destinations in the eyes of property buyers and investors alike.

Kelvin Yip, Associate Director of Residential Sales & Leasing in Knight Frank Malaysia, says, “During 1H 2018, potential buyers or investors are switching away from a “wait-and-see” approach and are now genuinely seeking for good bargains in the market. This trend has reduced the chances of a sharp correction in the residential property market as we expect stronger demand to continue and the oversupply situation to be less severe.

“Also, developers are now becoming more aggressive in promoting their products by conducting nationwide roadshows. Based on the current trend, we expect the residential market to record more transactions in 2H2018. Home ownership, which commands a high cultural value among Asian societies, will be another reason why we anticipate more market activity to take place in the residential market.

“The capital city KL will remain as the well-liked investment destination among foreigners as prices are still reasonable as compared to other major Asian cities. Unlike cities such as Hong Kong and Singapore, where foreign buyers are subjected to additional buyer’s stamp duty, Malaysia’s residential market remains relatively investor friendly to foreign buyers.”

Click here to view Knight Frank Malaysia's Real Estate Highlights 1H 2018 report. 

For more information or to discuss the report, email Judy Ong, Executive Director, Research and Consultancy, Knight Frank Malaysia via the contact details listed below. 

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