2022 is here and everyone is excited to know what is in store for Malaysia this year. Here's a round up of some experts’ outlooks on the economy and the property sector for 2022!

Economic Outlook 2022

Things are looking pretty good for Malaysia’s economy in 2022! Our economic growth is predicted to expand 6.8% compared to an estimated 3.8% in 2021 (Ram Rating Services Bhd). And thanks to the largest ever budget of RM331.1 billion announced last October, Malaysia’s gross domestic product (GDP) growth is expected to rise to 6%.


This, along with opening back domestic and international travel, commodity prices rising, and the high vaccination and booster coverages, Malaysia’s economy is expected to slowly get back up from its pandemic flunk. Even with the recent news and worries of COVID variants popping up, RAM has reassured that it could only “delay recovery but not completely derail it” if the government doesn’t announce any more movement control orders (MCO) this year. So, if things are running on track as they are right now, all fronts including the property industry should see a large rebound and create a steady financial environment for our future homebuyers!

Property Outlook 2022

Malaysia’s property market is also looking bright and should continue to improve at a steady pace. But like RAM, the RHB Investment Bank mentioned that things will be bumpy due to impacts from the rising Covid-19 cases, pricey building materials and property overhang.


Other key impacts highlighted by PropertyGuru include infrastructure projects like the new MRT line 3 which will improve accessibility and "create new economic focal points", making property more attractive.

As for Budget 2022, no game changing proposals have been given for the property sector except for the RPGT abolishment. And while many of us were crossing our fingers for an HOC extension,unfortunately we did not see this happen. But don’t lose hope yet, agents! The overall course into Q1 2022 is supported by the low-interest-rates, incentives, product positioning and campaigns that developers have been leading to boost sales from last year’s final quarter!

Speaking of sales, last year’s volume and values of transactions reached its lowest in Q2 during the full movement control order (FMCO) period imposed in June. Sales volumes started rising as we moved into Q3 2021 (throughout the National Recovery Plan (NRP) phases) and continued to rise into 2022. "With prices trending in a positive direction in the final quarter of the year," says Sheldon Fernandez, Country Manager at PropertyGuru Malaysia, the momentum “is expected to pick up pace and spill over into 2022." Following these trends then, we believe that this year’s sales will keep increasing at a steady pace!


Similar Posts