The recent political disruption in Malaysia that saw Prime Minister Mahathir Mohamad reclaiming the post he left several years ago will prove favourable to the national economy, likewise setting off growth trends to benefit specific industries. The country’s property market is likely to absorb the positive ramifications to come with the leadership change, a new report said.
With PM Mahathir again in charge of running the Southeast Asian nation, which is among the most vibrant economies in the region, there is a strong sense of improvements and growth to happen, according to Malaysian news site The Star Online. The report cited the latest industry assessment issued by real estate consultancy firm Knight Frank.
“Malaysia is expected to return to the radar of investors after the market stabilises with more clarity in the policies of the newly-elected government,” the industry expert said on its report that covered the first six months of 2018.
“There is a window of opportunities for recovery in the property market, including the high end segment,” Knight Frank further predicted, adding the historic installation of the Mahathir government led to the perception that “improving sentiments” are currently in effect.
In addition, the consultancy group pointed to a Malaysian economy with “a strong growth momentum” and the rising oil prices as key factors to fuel a rebound in the nation’s property sector.
Rising Demand For High-End Condominium
Reflecting such a positive outlook in the market is the expected uptick in the demand for premium condominium in Kuala Lumpur, which Knight Frank said is a rock-solid indicator that property investors have put their faith on the national government with Mahathir at the helm.
In support of this, the group stated that market inquiries from potential buyers have considerably increased in the aftermath of the recent elections that saw Mahathir returning to government after years of retirement.
Also, the firm lauded the Mahathir government’s decision to include the condominium sub-segment on the list of tax break beneficiaries, saying the move “is expected to boost the commercial sub-sector as buyers purchasing commercial properties during the tax holiday period pay zero percent GST.”
In the near- and over the long-term, Knight Frank said the particular market segment will be busier than ever, likely to improve on the mere 216 condo units that were sold in Kuala Lumpur during the early months of the year.