Property development in MalaysiaJune 23, 2020
The Malaysian property market has a mixed reception nowadays, with many lamenting increasing prices of home ownership and a looming economic recession. However, it is still evolving to suit ever-changing buyer demographics.
We have seen booming property development in big cities like Kuala Lumpur, Penang and Johor Bahru. In just the span of a decade, high-rise commercial properties and luxury condominiums are popping up as demand for better quality homes keeps on increasing. Before we look at the current trends, let us take a glance back at what makes property development in Malaysia the way it is today.
Before the 1970s, the property market is yet to mature. Demands for housing is simply a matter of volume as houses were insufficient. Other than that, the problem was also exacerbated by a lower number of property developers in Malaysia. Up until the 90s, the government tried to improve the situation by implementing several housing policies such as the New Economic Policy (NEP) and public low-cost housing programs.
As time goes on, Malaysians have started to experience an improved quality of life which lead to the demand for more and better housing options. Modern property development in Malaysia aims to meet the demands of current buyers, in which a significant proportion is made up of millennials or younger.
Younger buyers tend to have more robust purchasing habits as they seek not only houses as shelters. Buying a certain house should allow them to live a certain lifestyle that they desire. Back in the days, having a swimming pool and playground is considered the only requirement. Even a barbeque pit was considered an additional luxury.
Nowadays, buyers look beyond basic facilities. Young buyers prefer having an environment that provides them with convenience and accessibility. The general consensus among major developers such as UDA is that mixed development will be increasing among new launch properties in Malaysia. These are developments that combine facilities, architecture, and design with retail outlets, recreational spaces and connectivity.
Mixed-use developments are only going to increase in the future. Young buyers also tend to “live out” rather than “live in” with the latter meaning a tendency to stay at home. Having connectivity and the necessary facilities allows young homeowners to enjoy the lifestyle that they desire.
Throughout the years, urban property development in Kuala Lumpur and Penang have led to a significant increase in luxury options. Residents in urban areas are able to afford better houses but it has also led to an unhealthy skew towards premium developments. Even now, the demand for low-cost affordable properties in Malaysia is still at an all-time high.
As many property developers in Malaysia try to balance between cost of construction and keeping an affordable price tag, the result is simply smaller homes. With the necessary facilities, it still fits into the desired lifestyle of younger homeowners. Currently, the average sizes for units are 700 sq. ft with smaller ones not unheard of. To appeal to the younger demographics, these smaller units also come integrated with smart home technology.
Moving forward, the market is projected to receive an influx of mixed and affordable development. On the other hand, luxury property development in Kuala Lumpur and Penang might slow down a little bit as demands shift.
Following this trend, UDA Property is going to continue supplying the market with properties that enrich the quality of living among homeowners. Click here to find out more about UDA’s various new launches and residential properties.