Real estate agents upbeat on home prices

KUALA LUMPUR: If the results of a recently completed survey are anything to go by, those who plan to buy a new home or apartment should do so now.

The Juwai IQI Malaysia Property Survey and Index Q3 2022 reveals that prices of residential properties are projected to rise over the next 12 months on expectations of a better economy.

Respondents to the survey targeted at real estate agents expressed optimism that the economy will improve and, by extension, the property market will rally over the next 12 months and is likely to continue for the next 24 months.

They said these developments will see prices and rental yields in the residential sector rise.

Juwai IQI co-founder and group CEO Kashif Ansari said real estate agents across the country believe that prices of residential properties will go up by 11.8% over the next 12 months, and continue the following year, with prices ending 16.5% higher over the next 24 months.

Ansari attributed the optimism in the real estate market’s performance to agents’ bullish outlook on the economy.

“About 45% of agents believe the economy will be somewhat stronger or much stronger in the next six months,” he added.

According to the survey, agents predict that residential prices in Penang will see 17% growth in two years, Johor is expected to see 18% growth, while prices in Kuala Lumpur and Selangor are expected to go up by 15.9% and in Sabah by 14.7%.

Ansari pointed out that since the inception of the survey in 2019, the figures obtained this year were the most robust for the growth forecast of residential price.

“The forecast has changed significantly since the third quarter of 2021. Then, agents anticipated a 5% decline in residential prices, and events proved they were not far off,” Ansari added.