Malaysia’s property transaction value is projected to exceed RM250 billion this year, driven by steady growth and government-backed homeownership schemes.
KUALA LUMPUR: Malaysia’s property market is on track to exceed a total transaction value of RM250 billion this year.
Housing and Local Government Minister Nga Kor Ming said the market continues to grow at a steady pace with no signs of a bubble.
Total property transactions have improved consistently over the past three years, reflecting healthy market conditions rather than speculative activity.
The transaction value climbed from RM196.8 billion in 2023 to RM232.3 billion in 2024.
According to the Department of Statistics Malaysia, the homeownership rate in Malaysia currently stands at 76.5%.
This rate surpasses other developed countries including Australia, the United Kingdom, the United States, and Germany.
To further boost homeownership, Nga said the government’s priority is to raise income levels.
He added that direct price controls are not feasible in a free market.
The government is actively attracting more foreign direct investments into the country.
The World Bank has predicted Malaysia will become a high-income nation by 2028, with a gross national income per capita of US$14,000 or more.
This economic progress will allow more people to afford homes.
“What we need is healthy appreciation, not depreciation, nor skyrocketing prices, which is a speculative growth,” Nga said.
In terms of financial support, the government has introduced the RM40 billion Housing Credit Guarantee Scheme (SJKP).
This scheme is designed to help more Malaysians purchase their first homes.
Nga urged all banks to participate in the scheme to improve access to homeownership.
To date, the SJKP scheme has helped more than 97,750 people own their first home.
The minister expressed hope that more Malaysians will benefit from this government-guaranteed scheme.