As Singapore gears up for its general election, the influence of young voters on housing policies is becoming increasingly significant. 

​By Khalil Adis

Sam (not his real name) and his wife had been waiting for years to buy a flat.

Married to a permanent resident, the couple had to wait three years before they could even begin their home-buying journey.

Like many young Singaporeans that I had met recently, affordability was a major concern.
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The 4-room flats in their preferred areas were priced between $500,000 and $600,000, leaving them wondering if homeownership was financially realistic.

However, after receiving their HDB Flat Eligibility (HFE) letter, their dream began to feel within reach.
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Turning dreams into reality

The good news? They were eligible for a total grant of $150,000—comprising a CPF Housing Grant of $80,000, an Enhanced CPF Housing Grant of $50,000, and a Proximity Housing Grant of $20,000.

With their finances secured, their maximum loan was approved for the upper $300,000 range, giving them a strong foundation for their home purchase.

Armed with their budget, the couple began house hunting.

Their requirements were clear.

Firstly, the unit needs to have a  flexible layout to accommodate their future family needs.

Secondly, it has to be within 4km from Sam's parents.

Thirdly, it has to be within access to park connectors and green spaces - an important factor for their growing child.
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After two weeks of viewings, they finally secured their dream home in northern Singapore.

To their relief, the unit did not come with any cash-over-valuation (COV), making it even more affordable.

Housing aspirations are evolving

Sam’s journey reflects a growing trend among young Singaporeans—housing affordability remains a top priority but expectations are evolving.

While previous generations also focused on affordability, here are some of today’s additional considerations I noticed young buyers have:
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Rising cost of living
With inflation driving up prices, many young Singaporeans are rethinking long-term financial commitments.

As a result, co-living spaces have gained popularity among young professionals.

The flexibility of renting appeals to those who prefer mobility, much like digital nomads..​

The gig economy
Unlike previous generations, full-time employment is no longer seen as the only path to stability.

Many now prioritise work-life balance and mental health which affect their housing choices (and how much loan they can get should they decide to switch to freelancing).
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Sustainability
There’s a growing emphasis on green developments with many young buyers actively seeking eco-friendly features.

So far, the government has kept pace with these changes, introducing Climate Vouchers, rolling out solar panels in HDB estates and prioritising sustainable town planning.

I would also say, young Singaporeans are also health conscious leading active lifestyles.

This explains why some of them prefer living near to gyms or park connectors.

Shifting family patterns
At the same time, marriage and family patterns are shifting.

Rising living costs and career aspirations are leading many to delay marriage and homeownership.

According to data from the Department of Statistics Singapore (2024), the number of single Singaporeans in their 30s has increased by 13 per cent over the last decade
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Housing challenges for singles

The Singapore Consumer Price Index (CPI) released in January 2025 reported year-on-year increases in transport (3.1 per cent), food (1.5 per cent), health (1.5 per cent), and housing & utilities (1.4 per cent).

With these rising costs, some singles are finding it difficult to secure housing.
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A friend of mine, for instance, has temporarily relocated to Malaysia while waiting for clearer housing policies.

The government has taken steps to address this issue—since June 2024, singles can now purchase HDB flats in all locations (previously, they were limited to non-mature estates).

However, some still feel that they should be allowed to purchase 3-room flats instead of being restricted to 2-room units.

For low-income earners and freelancers, this limitation makes it harder to afford homes in the resale market.

If you are single and considering homeownership, I would urge you to explore the many available grants.

You can then subsequently upgrade and consider different housing types once you have met your Minimum Occupation Period (MOP).

As we have already seen, the property market is ever evolving and policies may continue to shift post-election.

Government’s response and policy adjustments

While bread-and-butter issues will dominate the election, young Singaporeans will prioritise policies that impact their financial well-being and long-term security. 

To address these concerns, the government has introduced  various measures.

Firstly, there is greater transparency in pricing and shorter waiting times for BTO flats.

Secondly, since February 14, 2023, the CPF Housing Grants has been increased for first-time resale flat buyers—by up to $30,000. This makes homeownership an even more attainable dream.

Thirdly, as of March 2025, the government had announced an expanded Fresh Start Housing Scheme  where first-timer families can now apply. Previously, it was limited to second-timers only.

Last but not least, sustainable housing initiatives such as green townships, car-lite communities (such as Tengah and Bayshore) and recycling rubbish chutes as well as solar panel are now being rolled out in BTO flats.

For those seeking rental options, the Public Rental Scheme (PRS) provides affordable housing for lower-income Singaporeans.

However, for professionals who prefer co-living spaces, the Single Room Shared Facilities (SRSF) Pilot remains one of the few available government-backed options.

As we can see from the above examples, the government has consistently adapted housing policies to meet public demand.

However, balancing affordability and long-term sustainability remains a challenge.

With Singapore’s strong emphasis on homeownership, I would encourage young Singaporeans to consider getting their first step into the property market.

Ultimately, owning your home versus long-term rental will be a more sustainable option.
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Conclusion: The future of housing policies in Singapore

The growing political influence of young voters is undeniable, particularly in shaping housing policies.

As their preferences and expectations evolve, policymakers must respond with innovative solutions to ensure that housing remains accessible, affordable and aligned with modern lifestyles
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Having said that, Singapore remains one of the few countries where our government continues to offer assistance to make homeownership attainable.  

As a Singaporean, I am proud to say that Singapore has one of the highest homeownership rates in the world at more than 90 per cent, thanks to careful long-term planning.
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However, as society evolves, housing policies will also need to keep pace.

Under Prime Minister Anwar Ibrahim's leadership, the property market in 2024 appeared to have stabilised and will likely continue to do so in 2025.

​By Khalil Adis

When I first started reporting on the Malaysian property market in 2008 as an editor for Property Report magazine, I remember feeling overwhelmed by the country's sheer size.

“Where should one even begin?” I wondered.

As I navigated the complex property market and started speaking to various analysts and market leaders, I realised there are a few key cities that have seen consistent demand among both local and foreign investors.

I had also assumed that, like Singapore, high-rise residential apartments were the most popular property type in Malaysia.

This is a common mistake that many Singaporean investors make.

However, when you speak to locals, many would prefer living in a freehold landed terraced home.

These are just some of the nuances one must grasp when understanding the Malaysian property market.

Fast forward to 2025, these key cities for property investments remain the same—Johor (including Iskandar Malaysia), Selangor, Kuala Lumpur, and Penang.

Here is a quick review of each market, what happened in 2024 and the predictions for 2025.
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Kuala Lumpur: A city of opportunities and challenges

What’s not to love about Kuala Lumpur?

With its favourable exchange rate, exciting nightlife, unrivalled shopping experience, delicious local foods and tourist attractions, it is no wonder Kuala Lumpur remains a perennial favourite among Singaporean and local investors.

However, Kuala Lumpur also has its share of challenges, which many investors may not be aware of.

According to data from the National Property Information Centre (NAPIC), of the total 22,642 overhang units in Malaysia as of the first half of 2024, Kuala Lumpur had the third-highest residential overhang status in the country at 3,051 units.

In Kuala Lumpur, these unsold units are comprised mainly of condominiums and apartments.

According to NAPIC, in terms of value, Kuala Lumpur recorded the highest overhang value, with RM3.06 billion worth of unsold units.

Across Malaysia, properties priced at more than RM1 million contributed to 12.0 per cent (2,719 units) of the national total.

Since the minimum purchase price for a foreign investor in Kuala Lumpur is RM1 million, imagine the intense competition you may face in the resale market if you decide to offload your property.

The sheer number of unsold units compared to what Malaysians can generally afford (below RM300,000) means you might have to either sell your property at a loss or wait a long time for the right buyer.

The oversupply of condominiums and apartments also affects rental income.

Rental market trends in Kuala Lumpur
According to listings on PropertyGuru Malaysia, two-bedroom condominium units in KLCC have an average asking rental price of RM3,000 per month.

Assuming your mortgage payments amount to RM3,700, your rental income alone would not be sufficient to cover your property upkeep and other expenses.

Likewise, rental yields may not be as attractive.

For example, an RM1 million unit rented out at RM3,000 per month would generate a rental yield of 3.6 per cent.

For better rental yields, investors should consider buying near transportation hubs like the newly constructed Kajang MRT Line, Putrajaya MRT Line, LRT stations, and educational institutions.

These areas tend to have high foot traffic and excellent connectivity, making them desirable for renters.
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Selangor: The heartland of Malaysia’s property market

​Also referred to as Greater Kuala Lumpur, Selangor is where most Malaysians reside.

Think of it as Kuala Lumpur’s heartland, similar to Singapore’s Punggol or Ang Mo Kio, where property prices are significantly lower than in the city centre.

Over the years, Selangor has benefited from several federal government-initiated transportation projects that have positively impacted the property market.

These include the Kajang MRT Line and Putrajaya MRT Line.

While property prices in Selangor are more affordable, there is a catch—the minimum purchase price for foreigners is RM2 million.

This presents a conundrum.

If offloading a RM1 million property in KLCC is already challenging, selling a RM2 million one further from the city centre becomes even more difficult.

To put it into Singaporean terms, it is like trying to sell a S$2 million condominium in Punggol and hoping a local buyer living in a S$500,000 four-room flat will upgrade.

Similarly, within Selangor, the price gap between what locals can afford and what foreigners must pay is substantial.

Also, most locals would prefer to buy a freehold landed property for the same price.

Rental market trends in Selangor
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Selangor does, however, present a vast rental market.

According to NAPIC, all districts recorded modest growth in rental rates for terraced houses and high-rise units, particularly in Petaling, Klang, Hulu Langat, and Gombak.

Given the preference for landed homes, it is not surprising that such properties in select areas saw higher rental rates.

For instance, NAPIC data showed that double-storey terraces in urban centres such as Mutiara Damansara, Bandar Utama, Subang Jaya, and Bandar 16 Sierra had rental rates ranging from RM2,200 to RM2,800 per month.

Meanwhile, similar houses in Setia Eco Templer, Taman Alam Sari, and Setia Eco Glade recorded higher rental rates between RM2,500 and RM3,900 per month.

Notably, these are all township developments located away from the city centre in Rawang, Bangi, and Cyberjaya, respectively.
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Johor: A promising start that fizzled out

I have personally witnessed Johor’s massive transformation since 2008, particularly in Iskandar Puteri (formerly Nusajaya) and Medini.

I recall attending a media site visit where officials from the Iskandar Regional Development Authority (IRDA) and Iskandar Investment Berhad (IIB) presented their master plan for Flagship B, showcasing catalytic industries such as Islamic finance, education, tourism, creative, and high-tech manufacturing.

At the time, the vision was impressive.

Yet, many Singaporeans I interviewed remained skeptical.

By 2013, however, interest in Iskandar Malaysia surged among Singaporean investors, especially after Temasek Holdings announced its investment in Danga A2 Island through CapitaLand Malaysia Pte Ltd.

However, somewhere along the way, the master plan changed beyond recognition.

Massive high-rise developments sprang up along Danga Bay and near the Second Link, particularly with the introduction of Forest City.

Market analysts began sounding alarms about oversupply, questioning the sustainability of Johor’s property market.

Fast forward to 2025, and the numbers from the National Property Information Centre (NAPIC) paint a concerning picture. Johor recorded the second-highest number of overhang units in Malaysia, with 3,219 unsold residential properties valued at RM2.80 billion—mostly condominiums and apartments.

That equates to an average price of RM869,835 per unit, a figure far beyond the reach of most Johoreans.

Johor Housing and Local Government Committee Chairman Datuk Mohd Jafni Md Shukor recently reported that Johor experienced over 15 per cent growth in overall property sales, including sales of previously overhung properties.

As of December 2024, Johor has 102,438 serviced apartment units, with 11,810 remaining unsold.

Despite these challenges, NAPIC data showed strong growth in serviced apartment transactions, with a 47.4 per cent increase in volume (6,804 transactions) and a 68.5 per cent rise in value (RM4.94 billion) in the first half of 2024 compared to the same period in 2023.

By state, Johor and WP Kuala Lumpur led the market, capturing 36.2 per cent (2,465 transactions) and 33.0 per cent (2,245 transactions) of the national total, respectively.

Yet, the 11,810 unsold units will continue to impact the resale and rental markets in the foreseeable future.

Rental market trends in Johor
Data from NAPIC revealed that Johor’s rental market remained stable, with mixed movements in urban centres such as Johor Bahru, Kulai, and Batu Pahat.

Due to their limited supply, landed terraced homes continue to perform better in the rental market.

For instance, double-storey terraced homes in Horizon Hills and Taman Laguna fetch between RM2,200 and RM3,000 per month.

With the upcoming Johor-Singapore Special Economic Zone (JS-SEZ) and the RTS Link, areas like Bukit Chagar, JB Sentral, and the Ibrahim International District may experience renewed investor interest.
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However, legal complications in Medini and continued concerns over the oversupply of high-rise units remain as cautionary factors.
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Penang: The island effect

I have reported extensively on Penang’s property market since 2010.

I remember spending nearly a week on the island, photographing developments and interviewing key developers, including SP Setia and IJM Land (which was then developing The Light).

Previously governed by the United Malays National Organisation (UMNO), Penang’s development accelerated under the Democratic Action Party (DAP).

A small but significant change caught my eye—Penang had started cleaning up its act.

For instance, Gurney Drive, once littered with rubbish, is now clean and well-maintained.

With George Town being recognised as a UNESCO World Heritage Site in 2008 and the launch of the George Town Festival in 2010, Penang’s appeal among tourists and investors has skyrocketed.

There is an unmistakable sense of pride among Penangites in preserving the historic city of George Town.

Similar to Singapore, Penang faces land scarcity and pent-up housing demand, which have driven up property prices—commonly referred to as the “island effect.”

However, unlike Singapore which is relatively flat, Penang has a hilly inner terrain making most parts of it unsuitable for development.

This, together with local regulations that prohibit developments from taking place on these hilly terrains, has resulted in very little land available for housing developments.

The scarcity of land versus the increase in demand for homes in Penang has brought about a spike in prices.

As a result, property prices are increasingly out of reach for locals, while foreign investors view Penang as an affordable retirement destination due to the lower cost of living.

According to NAPIC, recent easing of Malaysia My Second Home (MM2H) requirements has helped attract more foreign investors to Penang.
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Key investment hotspots in Penang

Some of the most sought-after locations include the following:

• Tanjung Bungah
• Tanjung Tokong
• Batu Ferringhi
• George Town
• Queensbay
• Gurney

Property overhang in Penang

In terms of unsold units, Penang ranks fourth in Malaysia, with 2,400 overhang units, primarily condominiums and apartments in Southwest Penang.

With 8,168 units in the supply pipeline (including overhang, unsold under construction, and unsold not constructed), high-rise residential resale and rental markets are expected to remain competitive.

Penang’s rental market
Data from NAPIC shows Penang’s rental market has remained stable, with mixed movements in various districts.
Notably, single and double-storey terraced houses in Southwest Penang saw rental increases of 4.5 per cent to 10.0 per cent, with rentals reaching up to RM2,000 per month.

Moving forward, landed residential properties in Penang are likely to outperform high-rise units, given the strong local demand and limited land supply.
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What happened in 2024?

With property prices soaring in Malaysia, it is no surprise that demand for affordable homes continued to drive the residential property sector.

According to data from the National Property and Information Centre (NAPIC), homes priced at RM300,000 and below accounted for 53.1 per cent of all residential transactions.

Overall, the residential sector recorded 121,964 transactions worth RM49.43 billion in the first half of 2024.
Compared to the same period in 2023, this marks a 6.1 per cent increase in volume and 10.4 per cent growth in value.

The boost in transactions can be attributed to various government incentives under Budget 2024 aimed at promoting homeownership, especially for first-time buyers.

One such initiative is the Housing Credit Guarantee Scheme (HCGS), which saw its funding increase from RM5 million in 2023 to RM10 million in 2024, helping up to 40,000 borrowers—particularly freelancers and gig workers—secure housing loans.

Another key measure was the RM2.47 billion budget allocation for the People’s Housing Project (PPR), also known as Program Perumahan Rakyat. This included RM546 million to continue 36 PPR projects, including a new development in Kluang, Johor.

Lastly, the government introduced a full stamp duty exemption on the instrument of transfer and loan agreements for first-time homebuyers purchasing properties priced up to RM500,000.

This exemption remains in effect until 31 December 2025.
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Nationwide market performance

Selangor contributed the largest share to the national market, capturing 22.3 per cent of transaction volume (27,174 transactions) and 30.6 per cent of total value (RM15.15 billion).

Johor followed, with 15.3 per cent of total transactions (18,648) and 18.2 per cent of total value (RM9.02 billion).
Together, Kuala Lumpur, Johor, Selangor, and Penang accounted for about 50 per cent of all residential transactions in Malaysia.

It is no surprise that landed terraced homes remained the most sought-after property type, making up 43.0 per cent of total transactions.

This was followed by vacant plots (15.3 per cent), high-rise units (14.3 per cent), low-cost houses/flats (10.8 per cent) and semi-detached homes (7.9 per cent)

Kuala Lumpur: Where rental growth thrives

Some areas in Kuala Lumpur witnessed strong rental growth, particularly those near major transportation hubs.

According to NAPIC, demand for double-storey terrace homes in premium areas like Damansara Heights, Desa Park City (Casaman), and Desa Sri Hartamas pushed monthly rentals beyond RM5,000.

Similarly, luxury condominiums in prime locations such as U Thant Residence, The Oval, 10 Mont Kiara, and Sunway Vivaldi recorded monthly rentals exceeding RM11,000.
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Selangor: A landlord’s market

Selangor remains a high-demand rental market, attracting local renters across various districts.

NAPIC data showed modest rental growth across Petaling, Klang, Hulu Langat, and Gombak, particularly for double-storey terraces in urban areas.

For example, Mutiara Damansara, Bandar Utama, Subang Jaya, and Bandar 16 Sierra saw monthly rental rates between RM2,200 and RM2,800.

Meanwhile, Setia Eco Templer, Taman Alam Sari, and Setia Eco Glade commanded even higher rentals, ranging from RM2,500 to RM3,900 per month.
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Notably, these are township developments located outside central Kuala Lumpur, in Rawang, Bangi, and Cyberjaya.

Johor: A market under scrutiny

Back in 2008 and 2009, during a media visit to Iskandar Puteri, I was introduced to Medini—touted as a free-trade zone with no minimum purchase price for foreigners under a private lease scheme.

At the time, it seemed like a groundbreaking initiative, but over the years, bureaucratic and administrative setbacks began to surface.

In November 2024, I received a tip-off from a Singaporean buyer at Iskandar Residences who revealed shocking issues regarding property ownership in Medini.

In the documents seen, the individual strata titles that was issued nearly a decade later, showed that instead of the buyer being the legal owner, the title was still under Iskandar Investment Berhad (IIB).

This has now escalated into a legal battle, with 63 plaintiffs suing the developer, Distinctive Resources Sdn Bhd and the landowner, IIB, for fraudulent misrepresentation.

According to the source, around 10,000 homes within Medini do not have any strata title.

Given the Johor-Singapore Special Economic Zone (JS-SEZ) is being actively promoted, this controversy could shake investor confidence in Johor’s property market.

Johor’s rental market

Despite the legal concerns, Johor’s rental market has remained stable, with mixed trends across Johor Bahru, Kulai and Batu Pahat.

Limited supply helped double-storey terraces in Horizon Hills and Taman Laguna fetch RM2,200 to RM3,000 per month.
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Penang: Stability in the face of change

Penang’s rental market has shown stable trends, with mixed movements across different districts.

According to NAPIC, Southwest Penang saw rental increases of 4.5 per cent to 10.0 per cent, with single and double-storey terraced houses fetching up to RM2,000 per month.

Moving forward, landed homes are expected to outperform high-rise units due to strong local demand and limited land supply.
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Predictions for 2025: Where should you buy in Malaysia?

If you are thinking about buying a home or investing in property in Malaysia in 2025, here is my advice: follow the infrastructure.

Why? This is because history has shown us that when new train lines, highways or economic zones are introduced, property prices in those areas tend to skyrocket.

It has happened before in places like KL Sentral and even parts of Iskandar Malaysia.

However, knowing where to buy is the tricky part.

Some areas will see real growth while others may remain stagnant for years.

That is why I have put together this guide—to help you cut through the noise and make a smart, informed decision.
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Let us start with Johor.
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Johor: Can it deliver?

I remember frequently commuting back and forth via the Johor-Singapore Causeway a few years ago to report on the property market and to give talks for property developers.

Needless to say, while I enjoyed it, it was a frustrating and exhausting experience.

Sometimes, it can take up to five hours just to cross the border.
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It also made me wonder—will Johor ever become more than just a commuter town?

Fast forward to today, things are finally starting to change.

For example, the Johor-Singapore Rapid Transit System (RTS) Link is finally taking shape (like finally!), promising to slash travel time between JB and Singapore to just five minutes when it launches in 2026.

No more endless border queues that I used to endure!

If this were to actually happen as planned, areas like Bukit Chagar, JB Sentral, and the Ibrahim International District could see a huge surge in demand —for both homes and businesses.

The Land Transport Authority (LTA) estimates that it will carry up to 10,000 commuters per hour, in each direction, during peak times.

That means a massive boost for businesses, rental demand and home values in the surrounding areas.

Meanwhile, there is another interesting development: a new data center in Iskandar Puteri.

Telekom Malaysia and Singapore’s Nxera are working together to build this next-generation facility, which is set to be completed by 2026.

If Iskandar Puteri positions itself as a tech hub, we could see more high-paying jobs in the area—and with that, a stronger property market.
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Broken promises?

Alas, however, Johor has been full of grandiose project announcements but with a lack of follow through.

For example, the much hyped about Bus Rapid Transit (BRT) has now been canceled.

Let us also not forget the high-profile government-to-government project, the Kuala Lumpur-Singapore High-Speed Rail (HSR) which has been scrapped (for now).

Finally, the Iskandar Malaysia much anticipated boom has delivered very mixed results.

Remember Sanrio Hello Kitty Town, Lat’s Place at Puteri Harbour and Pinewood Iskandar Malaysia Studios?

They are all gone.

What about the dismal footfall at Mall of Medini and eerily quiet neighbourhoods in certain parts of Iskandar Puteri and Medini when night falls?

Speaking of Medini, the ongoing court case involving Iskandar Residences in Medini has some buyers worried about whether the area is as investment-friendly as once promised.
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Should you invest in Johor?

Whether or not you should invest in Johor depends on your risk appetite.

If you are willing to bet on Johor’s long-term potential, focusing on areas near the RTS Link and major commercial projects could pay off.

Owner-occupied landed terraced homes (particularly gated and guarded) could also provide good capital gains over the long-term.

However, if you’re looking for a safe, guaranteed investment, you might want to wait out until the whole Medini debacle is resolved.

Kuala Lumpur: Is it still worth buying?

If you are a Malaysian buying your first home, I would not recommend Kuala Lumpur.

Why? First, property prices here are high, with a median resale price of RM610,000—a steep entry point for most young buyers.

Second, KL is already a mature market, meaning there is limited room for rapid price appreciation compared to up-and-coming areas.

That said, if you are an investor looking for rental opportunities, certain areas—especially those along new MRT lines—still have potential.

My advice?  Follow the infrastructure.
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Where to look: The Putrajaya Line

Kepong Sentral: A hidden gem with industrial demand
This isn’t just another train stop—it is an interchange for the KTM Komuter Port Klang Line and serves one of KL’s most well-connected suburban hubs.

With plenty of industries (plastics, printing, electronics), demand for rental housing is strong.

Expect to find a mix of medium-cost apartments, terraced homes, and semi-Ds—good for both investors and homeowners.

Kampung Batu: Affordable & well-connected
One of the most underrated areas along the MRT line!

This interchange for the KTM Batu Caves-Gemas Line links multiple townships (Kampung Batu, Sentul, Taman Kok Lian).

Housing is mostly affordable (low to mid-cost apartments and terraced homes), but there is solid demand due to amenities like Victoria International College and local eateries.

Titiwangsa: The ultimate transit hub
If there is one place in KL that is a connectivity powerhouse, this is it.

Titiwangsa is an interchange for MRT, LRT, KL Monorail, and the Pekeliling Bus Hub, making it a commuter’s dream.

It is also a prime location for short-term rentals with nearby hospitals (Hospital Sentosa, Damai Service Hospital) and MICE venues (PWTC and major hotels).

If you are eyeing serviced residences and condos, Titiwangsa could be a long-term winner.

Ampang Park: The OG prime area
Ampang Park MRT is an interchange for the LRT Kelana Jaya Line, sitting right next to KLCC.

The skyline here is packed with luxury condos like The Troika and Binjai Residency—meaning it’s great for high-end investors but not first-time buyers.

Tun Razak Exchange (TRX): Malaysia’s Wall Street?
TRX is not just a MRT stop—it is Malaysia’s answer to Hong Kong’s Central or Singapore’s Marina Bay Financial District.

With a GDV of RM40 billion and major banks setting up HQs here, commercial demand is booming.

Residential property here will not be cheap, but if you can afford to buy early, you could ride the wave of appreciation.

Sungai Besi: Future-proof or a planning nightmare?
While Sungai Besi links to the upcoming KL-Singapore HSR station, the area has serious urban planning issues—limited walkability, poor pedestrian access, and scattered development.

Connectivity here is a nightmare!

How do I know this? Because I used to live there.

Residents from 1 Petaling and Petaling Indah Condo already struggle to access transit.

Unless major infrastructure upgrades happen, investing here is a risky bet.

MRT 3 Circle Line: The game changer?

MRT 3 (Circle Line) will complete the Klang Valley rail network in a “wheel and spoke” system, linking existing MRT and LRT lines.

Hotspots along MRT 3 include:

• Bukit Kiara Selatan
• Kompleks Duta
• Titiwangsa
• Setiawangsa
• Pandan Indah
• Taman Midah
• Salak Selatan
• Kuchai
• Pantai Dalam
• Universiti

Why these areas?
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Properties near transit hubs and educational institutions historically appreciate faster and attract strong rental demand.

Selangor: Shifting my 2025 predictions

Previously, I had said that Southern KL was the next hotspot.

However, due to delays in the KL-Singapore HSR and Malaysia Vision Valley, I am revising my forecast.

Thus, the new key growth areas will be along the Kajang Line, Putrajaya Line and LRT Shah Alam Line.

Kajang Line: Where are the investment hotspots:
Kwasa Damansara: The next KL Sentral?
This 2,330-acre township is KL’s next big mixed-use hub.

Think KL Sentral… but at a much earlier (and more affordable) stage of development.
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With 30 per cent designated for housing and 70 per cent for commercial, prices here are still reasonable—but this will not be for long.

Kwasa Sentral: TOD living at its best
Part of Kwasa Damansara, but expect higher property premiums due to its centrality.

Meanwhile, its Park N’ Ride integration will attract car-owning professionals who commute to KL.

Bukit Dukung: The smart investor’s choice?
With Universiti Putra Malaysia (UPM) and the German-Malaysian Institute (GMI) nearby, this area attracts students and working professionals.

Savvy investors should look into auction properties (BMV), which can go for as low as RM100,000–RM200,000.

Stadium Kajang: Rising property demand
Stadium Kajang MRT station serves several townships, including Taman Sri Kantan, Taman Sri Jambu, Taman Bunga Raya, Taman Sri Kajang, and Taman Kajang Baru.

With enhanced connectivity, land here has become highly sought after.

As a result, developers like Gamuda and Country Heights have launched medium- to high-end township developments in the area.

Some notable projects include Jade Hills, Prima Paramount and Country Heights.

​The Kajang MRT Line has significantly improved access to Kuala Lumpur, making Kajang an attractive location for both homeowners and investors.

Putrajaya MRT Line
Sungai Buloh MRT Station: A key interchange hub
Sungai Buloh MRT station is a major interchange for MRT Kajang Line, MRT Putrajaya Line KTM Komuter & KTM Intercity

This station is conveniently located near ELC International School, serving upscale neighbourhoods like Bukit Rahman Putra, Damansara Damai, Bandar Sri Damansara, Valencia, Sierramas and Taman Villa Putra. With seamless connectivity to Kuala Lumpur, these areas are seeing increased demand from homebuyers and investors.

Serdang Raya South: A vibrant commercial hub
Located along the Kuala Lumpur-Seremban Highway, this station is right across South City Plaza and close to Mines Resort City.

It serves mature townships like Kampung Baru Seri Kembangan, which has a thriving commercial scene.

Established amenities here include AEON Equine Park, Giant, Maybank and McDonald's. A large overseas student population (Middle East & Africa) provides great potential for student accommodations provides strong rental demand.

UPM: A student-focused market
Located near Universiti Putra Malaysia (UPM), this station caters to a student population of over 24,000. UPM specialises in agricultural sciences and research, attracting both local and international students.

It is a good rental market as the station is near the Faculty of Medicine and Health Sciences, making it highly convenient for student.

There is a strong demand for rental properties among students and staff If you are considering investing in a unit for rental, UPM is a prime spot for student housing.

Sierra: A township with strong growth potential
Sierra MRT station is part of Bandar 16 Sierra, a township by IOI Properties located at the southern tip of Puchong.

This area is expected to benefit from two major government projects, namely KLIA Aeropolis and Cyberjaya City Centre.

The former is a multi-billion ringgit logistics and aviation hub while the latter is a smart city development in Cyberjaya

With good connectivity via the SKVE, MEX, and LDP highways, Sierra has one of the best capital appreciation potentials in Klang Valley.

Cyberjaya City Centre: The next KL Sentral?
Developed by Malaysian Resources Corp Bhd (MRCB), Cyberjaya City Centre will be a transit-oriented development (TOD) integrated with the MRT station.

Phase one is expected to generate a gross development value (GDV) of RM5.35 billion.

It will feature a 200,000 sq ft convention centre, a 300- to 400-room business hotel, low and high-rise office buildings and a retail podium.

With a 20-year master plan, Cyberjaya City Centre aims to become a major commercial and tech hub, strengthening Cyberjaya’s position as Malaysia’s Silicon Valley.

The MRT station is located just opposite Lim Kok Wing University of Creative Technology.

Putrajaya Sentral: A fully integrated transport hub
Putrajaya Sentral MRT station will be an interchange station to the Putrajaya Sentral Express Rail Link (ERL) station that links it to KLIA and KLIA2.

This station will be served by multimodal transports which include Putrajaya Monorail, a taxi centre and a bus hub, making it a fully integrated station.

As the seat of Malaysia’s government, Putrajaya has always been well-planned, but this new MRT connection will make commuting far easier for its residents.

LRT Shah Alam Line
BU11: Affluent suburban living
BU11 LRT station is located at Merchant Square, serving Tropicana and its surrounding high-end neighbourhoods.

Originally a landed residential zone, of late, however, luxury condominiums are now on the rise due to strong demand from nearby Bandar Utama and Kota Damansara.

Top developers here include Tropicana and Thriven. There is also a strong rental market as it is close to The British International School & First City University College.

Kerjaya: Industrial growth and rental demand
Located in Glenmarie, this station serves two major industrial parks.

Firstly, Hicom Glenmarie Industrial Park which is Home to Kawasaki Malaysia, DHL and other major corporations.

Secondly, Batu Tiga Industrial Park which is a light industrial zone surrounded by residential areas.

With a mix of local and expatriate professionals, there is strong demand for rental properties in Glenmarie.

Stadium Shah Alam: More than just a sports venue
Stadium Shah Alam LRT station will be built near to Shah Alam Stadium car park and will serve the Shah Alam Stadium, Stadium Malawati, the Management and Science University (MSU) campus, AEON Mall Shah Alam and the township of Taman Batu Tiga. MSU will provide a ready pool of potential tenants.

UiTM Shah Alam LRT Station: A student housing hotspot
UiTM Shah Alam LRT Station is located between Petronas and Shell petrol stations near the Federal Highway.

When completed, it will serve the Universiti Teknologi MARA (UiTM) campus and parts of Seksyen 2, specifically the nearby landed homes at Jalan Topaz 7/4.

There is a huge demand among students wanting to live off campus but within proximity to the university’s grounds.

In fact, the college management has established a Non-Resident Management Unit to help students find accommodations in Shah Alam. This presents a good opportunity if you are thinking of renting out your unit to students here.

Bukit Raja Selatan: Industrial park potential
Bukit Raja Selatan LRT Station is located within the vicinity of Bukit Raja Industrial Park and Lebuh Keluli.

The industrial area is home to multinational companies such as Nestle, Tamco Switchgear and Pharmaniaga Pristine, just to name a few.

Bukit Raja Industrial Park features modern-looking properties catering to light to medium industries.

Buying a property here means you can capture potential tenants working at the various multinational companies at the industrial park.

Pasar Jawa: The gateway to Klang and beyond
Pasar Jawa LRT Station is an interchange station that will be integrated with the Klang KTM Komuter Station serving the Port Klang Line.

When completed, it will serve Klang and its surrounding areas comprising Kampung Keretapi and Kampung Kastam. Port Klang is a shipping hub and a gateway to Malaysia. 

This is the place to live if you prefer a laid-back environment. Here, you can hop onto the train and then hop off to the ferry terminal to explore Pulau Ketam or Tanjung Balai and Dumai in Indonesia. You can also find the original Little India here offering masala tea to sarees at a fraction of the price than that is offered at Brickfields.
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Penang: An island that is moving up the big league

I have always loved visiting Penang.

There’s something magical about the island — the way George Town’s heritage charm blends with modern developments, and the undeniable pride Penangites have for their home.

It is a city that is constantly evolving, and over the years, I’ve been impressed by its rapid development.

Much like Singapore, Penang has so much untapped potential.
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And finally, we’re seeing it come to life.

Would I recommend It for first-time homebuyers?

Not really.

The main island is expensive, with even far-flung areas like Balik Pulau commanding an average residential price of RM600,000. 

For first-time buyers, that is a hefty sum.

However, if you’re an investor, there are some exciting growth areas—especially along new transport routes—that could see strong capital appreciation and rental demand.

One of the key projects driving this change is the Mutiara Line (previously the Bayan Lepas LRT), which the federal government took over in 2024.

The Mutiara Line: A game-changer for Penang
The Mutiara Line will span 29.5 km with 21 stations, running from Penang South Reclamation Island A (PSR-A) to Penang Sentral and KOMTAR.

Construction kicks off in early 2025 and once completed, it will drastically improve connectivity across the island.

Here are some potential hotspots along the route:
FIZ South: Silicon Valley of the East
This station serves the Bayan Lepas Free Industrial Zone, home to major multinational corporations like Osram and Bosch.

With a strong tenant base of professionals and expats, rental demand here is expected to remain high.

Bukit Jambul: A transportation hub in the making
Bukit Jambul station will connect to the Rapid Penang Bus Hub and Bukit Jambul Complex, making it a key residential and commercial interchange.

Sungai Dua: The link to the mainland
Sungai Dua station will be an interchange to the Sungai Nibong Bus Terminal, which connects Penang to major cities like Kuala Lumpur, Singapore and Ipoh.

This makes it a prime area for rental properties catering to travelers and working professionals.

Penang Waterfront: The future Sentosa of Penang?
This station will be located within The Light development by IJM Land—think Singapore’s HarbourFront meets Sentosa.

The master plan includes luxury waterfront homes, a convention center, and even a proposed interchange for the Georgetown-Butterworth Line, connecting Penang Island to Seberang Perai.

Sungai Pinang: The Future of sky transport
Although the exact location is not confirmed, it is likely to be near Karpal Singh Drive, where it will connect to the Penang Sky Cab system.

Developed by MRCB, the Sky Cab will carry 1,000 passengers per hour, per direction, reducing ferry dependency and improving cross-strait connectivity.

KOMTAR: The beating heart of George Town
KOMTAR is Penang’s equivalent of Singapore’s City Hall MRT station (albeit a more laid-back one)—a major transport hub.

Not only does it house the Rapid Penang bus interchange but there are also plans to upgrade it into a major MRT interchange for future monorail lines connecting Tanjong Tokong and Ayer Itam.

Seberang Perai & Batu Kawan: Affordable alternatives for first-time buyers
If you are buying your first home, I would recommend looking across the strait at Seberang Perai or Batu Kawan instead.

Since the Second Penang Bridge was announced in 2006, land prices in these areas have surged—but they are still relatively affordable with plenty of upsides.

According to data from Brickz, the entry price for residential properties in Seberang Perai and Batu Kawan is RM236,500 and RM467,000 respectively.

Seberang Perai: Growth in progress

​Once overlooked, Seberang Perai has transformed from agricultural land into a key development hub.

In 2015, property prices averaged RM56 per sq ft.

By 2024, that figure skyrocketed to RM327 per sq ft.

There are also state-led affordable housing projects in the pipeline. You can check them out here: LPNPP

Penang Sentral: The mainland's major transport hub
Seberang Perai is home to Penang Sentral Station, which links the island to mainland Malaysia. It will serve as an interchange for  KTM Butterworth, Butterworth Ferry Terminal and Rapid Penang Bus Terminal

Penang Port: A future halal logistics hub
The mainland is also positioning itself as a logistics powerhouse, with Penang Port emerging as Malaysia’s leading halal logistics hub.

There is also a proposed RM27 billion Raja Uda - Bukit Mertajam Monorail Line connecting the port to Permatang Tinggi.

Batu Kawan: The next urban hub
Once a sleepy town, Batu Kawan is now home to IKEA and township developments by EcoWorld and Mah Sing.
In 2019, property prices were RM219 per sq ft. By 2024, they had risen to RM367 per sq ft.

A Bus Rapid Transit (BRT) system is also in the works.

The BRT Permatang Tinggi - Batu Kawan Line will have 15 stations, running from Permatang Tinggi through IKEA before terminating at Bandar Cassia Industrial Park.

Should you invest in Penang?
It depends on what you’re looking for.

For first-time homebuyers, consider Seberang Perai or Batu Kawan for affordability and growth potential.

For investors, the Mutiara Line will be a key driver of capital appreciation on the island.

Areas near transport hubs like FIZ South, KOMTAR,and Penang Waterfront are promising for rental demand.

With these upcoming infrastructure projects, Penang is no longer just a cultural hotspot—it is fast becoming one of Malaysia’s most exciting property markets.

The government is expected to call for a general election in 2025, which may see further measures to stabilise the housing market.

By Khalil Adis

Singapore’s property market in 2024 witnessed notable developments, including record-breaking prices and a surge in private home sales. As the country looks ahead to 2025, which is widely expected to be an election year, further government measures to stabilise the housing market are anticipated.

Record high index in the HDB resale market ​

The Housing & Development Board (HDB) resale market reached new heights in 2024.

The HDB Resale Price Index (RPI) for the third quarter of 2024 increased by 2.7 per cent from the previous quarter, hitting 192.9 points—a record high.

To address growing demand, HDB had launched 21,225 new flats in 2024.

These included 19,637 Build-To-Order (BTO) flats across various estates and 1,588 units through the Sale of Balance Flats (SBF) exercise in February.

These launches are part of HDB’s commitment to providing 100,000 flats between 2021 and 2025, ensuring a steady supply of affordable housing for Singaporeans.
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Year-end surge in private home sales

The private property market also saw robust activity, especially in November 2024.

Developers sold 2,557 new private homes during the month, the highest monthly figure since March 2013.
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Top-selling projects in November 2024

Chuan Park (Outside Central Region, OCR)

Chuan Park sold 721 units at a median price of $2,586 per sq ft, a record launch price for the OCR.

This accounted for 81 per cent of OCR’s developer sales in November.

Emerald of Katong (Rest of Central Region, RCR):

​Emerald of Katong sold 840 units at a median price of $2,627 per sq ft, leading sales in the RCR.

Other notable projects that did well included Nava Grove (382 units sold at $2,445 per sq ft), and Hillock Green: (45 units sold at $2,278 per sq ft).

Last but not least, Union Square Residences and The Continuum enjoyed a combined sales of over 230 units.
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Impact on private resale market

While new launches thrived, the resale private property market saw a slight dip.

The Private Property Index (PPI) for resale homes declined by 0.7 per cent in the third quarter of 2024, likely due to increased supply from new projects.

2025: Housing affordability in focus

As housing affordability remains a key concern for Singaporeans, the government is expected to implement measures to address it in 2025.

These may include ramping up the supply of new homes and introducing further cooling measures, if necessary.
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HDB

Approximately 5,000 Built-To-Order (BTO) flats will be launched in early 2025 in Kallang/Whampoa, Queenstown, Woodlands, and Yishun.

The February 2025 Sale of Balance Flats (SBF) exercise will be the largest ever, with over 5,500 flats available.

Around 40 per cent of these will be move-in-ready, while the remainder will be progressively completed between 2025 and 2028.
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Private

November 2024 Government Land Sales (GLS) Programme launches

The URA released three residential sites at Media Circle (Parcel A & B) and Bayshore Road under the second half of 2024 GLS Programme.

Media Circle (Parcel A & B) is projected to yield approximately 325 and 500 residential units, respectively.
Bayshore Road is estimated to accommodate 515 residential units.

These three sites are part of the 5,050 residential units made available under the Confirmed List of the second half of 2024 GLS programme, aimed at catering to housing demand and ensuring market stability.
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December 2024 Government Land Sales (GLS) Programme launches

In December, the URA announced four additional residential sites at Holland Link, Holland Plain, Chuan Grove and River Valley Green (Parcel C) as part of the second half of 2024 GLS Programme:

Holland Link and Chuan Grove, listed under the Confirmed List, are expected to yield 230 and 555 residential units, respectively.

Holland Plain and River Valley Green (Parcel C), available for application under the Reserve List, could potentially yield 280 and 470 residential units, respectively.

Together, these sites further contribute to the government's commitment to releasing 5,050 residential units under the Confirmed List for the second half 2024 GLS programme to balance housing demand and market stability.
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First half of 2025 Government Land Sales (GLS) Programme launches

Also in December, the URA announced ten Confirmed List sites and nine Reserve List sites for the first half of 2025 which can yield about 8,505 private residential units, 242,900 sq m gross floor area (GFA) of commercial space and 530 hotel rooms.

The Confirmed List will comprise nine private residential sites (including three Executive Condominium sites) and one commercial and residential site which can collectively yield about 5,030 private residential units (including 980 EC units) and 43,000 sqm GFA of commercial space. 

The location of the six non-EC sites include Lakeside Drive, Dunearn Road, Chuan Grove, Upper Thomson Road (Parcel A), Dorset Road and Telok Blangah Road.

Meanwhile, the EC sites are located in the OCR, namely, Senja Close, Woodlands Drive 17 and Sembawang Road.
The commercial and residential site is located in Hougang Central.

In total, the Confirmed List can yield 5,030 private residential units and 43,000 sq m GFA of commercial space. 
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What they mean for buyers

The government appears to be carefully calibrating housing supply in response to prevailing economic conditions and property market trends.

The increased housing supply in both the HDB and private property markets is expected to help keep resale prices sustainable and aligned with wage growth, particularly benefiting first-time homebuyers.
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Summary

Looking ahead, buyers can look forward to a wide range of options in both new BTO flats and condominium launches, catering to different income levels.
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For HDB upgraders, upcoming condominium projects in suburban (OCR) and central (RCR) areas, such as Lakeside Drive, Dunearn Road, Chuan Grove, Upper Thomson Road (Parcel A), Dorset Road, and Telok Blangah Road, offer attractive opportunities to make their next move.

In 2023, the Malaysian property market saw significant trends and developments that have set the stage for the outlook and predictions for 2024. 

The huge mismatch between what Malaysians can afford to buy versus what developers are building has become increasingly apparent, leading to a shift in consumer behaviour towards renting instead of buying.

With affordable housing in short supply, especially in highly urbanised areas like Kuala Lumpur, Johor, Penang, and Selangor, demand for rental properties surged in 2023. 

This increased demand for rental properties has led to a notable shift in the market dynamics, with renters seeking affordable and well-maintained units in desirable locations.

In response to the changing market dynamics, developers in Johor, Selangor and Kuala Lumpur focused on catering to the mass market segment by launching new residential projects priced below RM300,000. 

These mass-market homes aimed to address the growing demand for affordable housing options among Malaysian buyers.

On the other hand, the overhang market in Johor, Selangor, Kuala Lumpur and Penang was dominated by residential properties priced between RM500,000 to RM1 million. 

This suggests that there is a surplus of mid-range properties in these areas, which may take longer to sell due to affordability constraints and oversupply issues.
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Johor

In Johor, the property market is expected to continue facing challenges in 2024, particularly in areas with a high concentration of oversupply. 

The mass market segment, which saw an abundance of new launches priced below RM300,000 in 2023, may experience slower growth as developers adjust to the changing demand landscape. 

However, growth areas such as within Iskandar Malaysia may still present opportunities for investors, especially in well-planned integrated developments that cater to both residential and commercial needs.

Selangor

Selangor, being one of Malaysia's most populous states and a major economic hub, is expected to maintain its position as a key player in the property market. 

While the demand for affordable housing is likely to remain strong, developers may shift their focus towards more sustainable and inclusive development strategies. 

Growth areas such as Cyberjaya, Shah Alam and Subang Jaya are expected to continue attracting interest from both buyers and developers, with a focus on mixed-use developments and transit-oriented projects.

Kuala Lumpur

In Kuala Lumpur, the property market is expected to see continued interest in high-density urban living, driven by factors such as urbanisation and lifestyle preferences. 

However, affordability concerns may lead to a greater emphasis on the development of affordable housing and innovative financing solutions. 

Growth areas within the city centre and its surrounding suburbs, such as KL Sentral, Bangsar and Mont Kiara, are expected to remain attractive to both investors and homebuyers.

Penang

Penang, known for its rich cultural heritage and vibrant lifestyle, is expected to continue experiencing steady demand for residential properties, particularly in sought-after areas such as George Town, Bayan Lepas, and Tanjung Tokong. 

However, affordability concerns and oversupply in certain segments may lead to a slowdown in the high-end property market. 

Developers may focus on niche markets and alternative housing options to cater to changing consumer preferences.

The growth areas to watch out for on the main island are mainly along the proposed Bayan Lepas LRT.

Growth areas

In addition to established urban centres, growth areas such as transit-oriented developments, industrial zones, and emerging satellite towns are expected to attract interest from investors and homebuyers alike. 

These areas offer opportunities for sustainable development and investment diversification, while also addressing issues such as urban sprawl and congestion.

Johor

In Johor, the growth areas are primarily located in Iskandar Malaysia, especially in well-planned integrated developments that cater to both residential and commercial needs.

One such area is Bukit Chagar which will serve as an interchange station Johor Bahru – Singapore Rapid Transit System (RTS) Link.

Slated to commence passenger service by end-2026, the RTS Link can serve up to 10,000 commuters during peak periods, for every hour and in each direction.

The RTS Link will also have a spillover impact in the nearby JB Sentral area which is home to malls, hotels and the upcoming Ibrahim International District.

Selangor

In Selangor, the growth areas are in Southern Kuala Lumpur, particularly, those near high-impact projects and transit-oriented developments along the Putrajaya Line, Kuala Lumpur–Singapore high-speed rail (HSR) and the Malaysia Vision Valley.

Nilai and Seremban are areas to watch out for.

Nilai is poised for further growth as it is located within the Malaysia Vision Valley. Covering Nilai to Port Dickson, it will have a proposed area of 108,000 hectares. 

The upcoming industries include high-tech, logistics, education, health, tourism and sports. 

The Malaysia Vision Valley is expected to create some 1.35 million jobs by 2035 and investments of more than RM417.6 billion by 2045.

To support the Malaysia Vision Valley, the Seremban HSR station will be situated in Nilai within the Labu and Kirby estates. 

Major townships in the vicinity include Bandar Enstek, Bandar Ainsdale Property and S2 Height. 

Seremban will be an interchange station for the Seremban Komuter Line and KTM Electric Train Service.

Kuala Lumpur

The growth areas in KL are along the MRT3 Circle Line, namely, Bukit Kiara Selatan, Bukit Kiara, Sri Hartamasa, Mont Kiara, Bukit Segambut, Taman Sri Sinar, Dutamas, Jalan Kuching, Titiwangsa, Kampung Puah, Jalan Langkawi, Danau Kota, Setapak, Rejang, Setiawangsa, AU2, Taman Hillview, Kuchai, Jalan Klang Lama, Pantai Dalam, Pantai Permai and Universiti.

Titiwangsa MRT station which will serve as an interchange station with the Ampang and Sri Petaling Line, KL Monorail Line and Putrajaya Line.

As the Circle Line is still under construction, this presents a good opportunity for genuine homebuyers to start looking in and around the station.

Homes in the secondary market will be the most ideal as they are priced cheaper than new launches.

Penang

The growth areas in Penang remain unchanged in Batu Kawan and some parts of Seberang Perai.

Since the opening of the Second Penang Bridge, Batu Kawan has seen rapid developments from several renowned developers such as EcoWorld and Tropicana as well as the opening of IKEA.

While connectivity remains patchy at Batu Kawan, there is a planned Bus Rapid Transit (BRT) system for Batu Kawan as part of the Penang Transport Master Plan.

In Seberang Perai, the growth areas will be along the planned Raja Uda-Bukit Mertajam Line to connect the northwestern region to the southeastern region.

For those who can afford to buy a property on the main island, areas along the Bayan Lepas LRT line will be the new growth corridor.

What’s in store for buyers

Buyers in 2024 can expect a more diverse range of options in the property market, with an emphasis on affordability, sustainability, and lifestyle amenities. 

Innovative financing schemes and incentives may also be introduced to encourage homeownership and address affordability concerns.

What’s in store for sellers

Sellers may need to adjust their expectations and pricing strategies to align with changing market conditions. 

Those with properties in oversupplied segments may need to offer incentives or value-added services to attract buyers, while those in high-demand areas may continue to command premium prices.
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What’s in store for tenants

Tenants can expect a more competitive rental market in 2024, particularly in urban areas where demand for rental properties is high. 

Affordability remains a key concern for tenants, and they may seek out properties with flexible lease terms and inclusive amenities.

What’s in store for landlords

Landlords may need to be more proactive in managing their rental properties, offering competitive rental rates and investing in property maintenance and upgrades to attract and retain tenants.

Those with properties in growth areas may continue to enjoy strong rental yields and capital appreciation.

Conclusion

Overall, the Malaysian property market is expected to continue evolving in 2024, with a focus on affordability, sustainability, and innovation. 

While challenges such as oversupply and affordability concerns may persist, there are also opportunities for growth and investment in emerging sectors and growth areas. 

By staying informed and adaptable, stakeholders in the property market can navigate these changes and capitalise on new opportunities in the year ahead.

The HDB, private property and rental markets will see price stabilisation in 2024 favouring buyers and tenants. 
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By Khalil Adis

If 2023 saw the HDB and private resale markets reaching record highs before subduing, then 2024 will likely see a further price correction arising from the property cooling measures, high-interest rates and upcoming supply.

Likewise, the red-hot rental market will see further signs of stabilisation in the upcoming year.

HDB resale market

The HDB Resale Price Index (RPI) reached a record high in the third quarter of 2023 at 178.5 points.

According to HDB’s flash estimate, the RPI for the fourth quarter of 2023 is at 180.2 points which is an increase of 1.0 per cent over that in the third quarter.

A total of 24,447 flats were offered by HDB in 2023 comprising 22,780 Build-To-Order (BTO) flats and a further 1,500 and 167 flats offered under the Sale of Balance Flats (SBF) exercise and open booking of flats respectively.

This new flat supply will likely divert buyers away from the resale market which leads to a corresponding dip in demand in both the resale and rental markets.

As demand for resale HDB flats and rental eases, the RPI will likely correct itself to a more sustainable level.

Private property market

The private property market also witnessed the Private Property Index (PPI) climbing to a record high of 196.0 points in the third quarter of 2023.

Meanwhile, the Urban Redevelopment Authority’s flash estimate showed that the PPI increased by 2.7 per cent on a quarter-on-quarter basis in the fourth quarter of 2023, to reach 201.3 points.

This brings the price gain for the whole of 2023 to 6.7 points.

The property cooling measures implemented in 2023 also affected sales volume as the government increased the Additional Buyer’s Stamp Duty (ABSD) and imposed a 15-month wait-out period for private property owners downgrading to HDB flats.

Data from URA showed that sales transaction volume fell by about 27 per cent on a quarter-on-quarter basis for the fourth quarter of 2023.

For the whole of 2023, sale transaction volume fell by about 15 per cent compared to 2022. This was the lowest annual sale transaction volume since 2016. 

Correspondingly, the increase in ABSD for foreigners from 30 per cent to 60 per cent appeared to impact prime areas the most.

According to URA’s data, non-landed private properties in the prime areas were the most affected while those that are located in the Outside Central Region (OCR) were the least impacted.

For example, the PPI for properties located in the Core Central Region (CCR) remained somewhat flat with a slight dip noted when the cooling measures were announced before rebounding to slightly below the 150-point level.

Meanwhile, those that are located in the RCR saw the index strengthening considerably from 2022 to 2023.

This implies that this particular segment had remained somewhat resilient despite the property cooling measures.

One of the reasons could be that the RCR is relatively affordable making it popular among first-time local private property buyers who will not be impacted by the ABSD.

Government ramping up supply in private and HDB markets

To further cool the property market, the government is ramping up supply of 5,160 units in the second half of 2023.

This will bring the total pipeline supply of private housing to about 59,100 units.

According to the URA, of this, 41,900 units will comprise those with planning approval and 17,200 units from Government Land Sale (GLS) sites and awarded en-bloc sites that have not been granted planning approval yet.

Overall, a total supply of about 100,000 public and private housing units will be completed between 2023 and 2025.

This will likely see a further price correction and promote market stability favouring buyers.

Growth areas

The growth areas in Singapore have remained unchanged based on URA’s Master Plan 2019.

The growth areas are in the Greater Southern Waterfront, Punggol Digital District and Woodlands Regional Centre.

Read more about the Greater Southern Waterfront here.

Read more about Punggol Digital District here.

Read more about Woodlands Regional Centre here.

What’s in store for buyers

With about 100,000 public and private housing units to be completed between 2023 and 2025, 2024 will shift towards a buyers' market.

This is because the incoming supply will ease demand and will likely see a further price correction and promote market stability in the resale market.

This will undoubtedly favour buyers.

What’s in store for sellers

Sellers will likely face a tough time in 2024 as the 100,000 supply of both public and private housing will see buyers buy new launches in both markets.

As such, sellers will need to price their houses realistically to continue attracting buyers.

We are also likely to see fewer million-dollar HDB flats and those selling with cash-over-valuation (COV).

Sellers will need to be pragmatic, moving forward.

What’s in store for tenants

Tenants, there will be plenty of good deals in the market. 

As such, 2024 is a good year for you to secure new a home with a fresh new lease at a reasonable price.

This is because the incoming supply will impact the rental market resulting in rentals for HDB and private properties coming down.

If your lease is expiring this year, it may be a good idea to renegotiate your lease with your landlord at market price.

What’s in store for landlords

Landlords will have to be realistic in their asking price in 2024 as the rental market is cooling off.

Conclusion

As Singapore's property market navigates the dynamic landscape of 2024, stakeholders should remain vigilant to the evolving trends.

The delicate balance between supply and demand, coupled with government interventions, will play a pivotal role in shaping the property landscape for buyers, sellers, tenants and landlords alike.

From map reading to identifying growth areas, this easy-to-understand session aims to assist first-time homebuyers looking for homes along the Sungai Buloh-Serdang-Putrajaya (SSP Line).
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By Khalil Adis

The Malaysian property landscape has undergone significant changes since the Covid-19 pandemic hit. 

With the completion of iconic projects like the Merdeka 118 Tower and the Sungai Buloh-Serdang-Putrajaya (SSP Line) over the past three years, there are exciting opportunities in the market. 

However, affordability remains a key concern for first-time homebuyers in Kuala Lumpur and Greater KL.

Data from the National Property and Information Centre (NAPIC) reveals that 48.2 per cent of the 8,226 new residential units launched in the third quarter of 2023 were priced below RM300,000. 

This indicates a strong demand for affordable properties. 

High-rise developments make up 67.8 per cent  of these units, while 32.2 per cent are landed properties. 
Selangor and Kuala Lumpur accounted for 1,062 and 1,236 units respectively.

To address these concerns and help first-time homebuyers make informed decisions, I will be covering one of the 5Cs of property buying - checking for the transport masterplan - in greater detail during my upcoming talk on July 16 at the iProperty Bumiputera Home & Property Fair 2023. 

Here are five things you can expect to learn:
#1: Learn how to do map reading

Navigating the Klang Valley and Greater KL areas can be overwhelming for first-time homebuyers. 

In this talk, we will learn the art of map reading to understand the different train lines that serve these areas. 

By gaining a grasp of the overall growth areas, we can then dive deeper into the newly completed SSP Line.
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#2: Understand the transportation master plan

Get to know the key facts and figures of the SSP Line, such as the budget allocation and the number of stations. 
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Understanding the transportation master plan will enable you to uncover the budget allocation from the federal government. 

We will analyse how this budget allocation can potentially have a positive spillover impact on properties along the line.

#3: Learn where the growth areas are

To identify potential growth areas, we will delve into the two other 5Cs - checking for economic drivers and job creation. 

By studying case studies like the Cyber City Centre and the KLIA Aeropolis Digital Free Trade Zone (DFTZ), we can gain insights into the areas with promising development potential.

#4: Find the sweet spot in terms of distance to train stations

While it may be tempting to buy a property close to train stations, we need to be cautious not to be too close, especially for elevated train stations. 

Additionally, developers need to adhere to certain requirements to qualify for transit-oriented development (TOD).
 
Learn about the sweet spots that strike the right balance and how they can impact your property's resale and rental value.

#5: Identify affordable properties along the SSP Line

Not all affordable areas are equal. 

To find truly affordable properties, we need to identify areas with new or upcoming train stations and government-announced plans for upcoming economic zones. 

These areas should be situated away from the city centre but close enough to train stations and dedicated hubs, ensuring long-term price appreciation. 

Discover the income-to-mortgage ratio and identify areas along the SSP Line that won't burn a hole in your pocket, offering the greatest potential for capital appreciation.

iProperty Bumiputera Home & Property Fair 2023

​Join me at the iProperty Bumiputera Home & Property Fair 2023 on July 16 to gain valuable insights into the property market and make informed decisions as a first-time homebuyer. 

Don't miss out on this opportunity to learn about navigating the Klang Valley and Greater KL areas, understanding the transport masterplan, identifying growth areas, finding the sweet spot in terms of distance to train stations and discovering affordable properties along the SSP Line. 

See you there!

A friend's personal journey of overcoming homelessness with the support of the government.

​By Khalil Adis

Imagine being homeless and not knowing where to turn for help. 

Recently, a friend of mine, whom I will call Derek, shared his struggles with me, and it struck a chord in my heart.

Having personally experienced this, it is a situation I would not wish upon to anyone else. 

Through Derek's and my journey, it shows that the Singapore government genuinely does care and provides assistance to those in need. 

Trying to move forward but unable to afford a home

Derek's life took a difficult turn after a bitter divorce, leaving him without a place to call home. 

With no choice but to leave his in-law's house, he had to find a rental room at short notice. 

Fortunately, Derek did not have the added burden of a shared matrimonial home or children, which made the situation slightly easier. 

Despite his efforts to move forward, Derek faced another obstacle – he could not afford to buy a home of his own with his current financial situation.

Feeling hopeless and at a loss

To afford a decent resale 2-room flat, Derek needed an additional $100,000 on top of his cash, CPF, and HDB loan amounting to $200,000. 

As a second-timer, he did not qualify for CPF Housing Grants that could have helped him. 

The situation seemed dire and Derek felt like he was running out of options. 

However, I knew from personal experience that giving up was not the answer.
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Light at the end of the tunnel

I encouraged Derek to reach out to his Member of Parliament (MP) for help. 

Despite the high cost of living in Singapore, our government genuinely cares about those in need and assists on a case-by-case basis. 

I had gone through a similar situation before and received the support I needed. 

Derek took my advice and wrote to his MP, hoping for a glimmer of hope.

The government's support and assistance

Recently, Derek shared some good news with me – his MP responded and the Housing Development Board (HDB) is looking into increasing his loan quantum. 

This development means that Derek may soon be able to fulfill his dream of owning a home. 

Derek's experience serves as a reminder that we should never give up hope, and reaching out to your MP can make a significant difference in your housing situation.

Conclusion

In Singapore, homelessness is not an outcome that the government wants for its citizens. 

As Derek's story shows, the government does show compassion and support when individuals find themselves in challenging circumstances. 

If you are facing similar housing struggles, I urge you not to lose hope and to reach out to your MP for assistance. 

The government is committed to helping those in need and ensuring that no one is left without a home. 

That's the beauty of Singapore – a nation that cares for its people, even in times of hardship.

As Singapore's property market continues to reach new heights, investors are eyeing Malaysia as a potential alternative. But is it the answer to Singapore's escalating property prices?  Let us find out.

​By Khalil Adis

Singapore's property market has been making waves, with both the HDB and private property sectors hitting record highs in their price indexes. 

This surge in prices has prompted investors and homebuyers to search for alternatives and Malaysia has emerged as a popular choice. 

However, before you pack your bags and head south, let us dive into whether Malaysia truly offers a viable solution to Singapore's escalating property prices.

The latest data from the Housing & Development Board (HDB) and the Urban Redevelopment Authority (URA) paints an intriguing picture. 

The HDB Resale Price Index (RPI) and Private Property Index (PPI) for the first quarter of 2023 reached unprecedented levels of 173.6 points and 194.8 points, respectively. 

These figures indicate a strong demand for properties in Singapore, driving prices to new heights.

Analysts say they are witnessing resale transactions decreasing from April to March 2023, which could explain the marginal increase in the RPI.

“In April 2023, HDB resale volumes decreased month-on-month by 4.3 per cent, following a 23.7 per cent surge in transaction activities in March,” said Luqman Hakim, chief data & analytics officer at 99.co..

But it is not just rising property prices that pose a concern. 

Rental rates have also skyrocketed, leaving tenants grappling with the search for affordable accommodations. 

Rising rentals

Take, for instance, Marwani (not her real name), a landlord in Jurong West, who witnessed the rental price of her 4-room flat soar from $1,750 per month in 2021 to a staggering $3,500 per month in 2023—an almost 200 per cent increase! 

“I am lucky that my tenants have continued to stay on despite the steep increase in rental,” said Marwani.

Her agent was the one who negotiated the lease renewal.

The private property rental market also experienced a steep climb, with a 7.2 per cent increase in the first quarter of 2023.

These exorbitant prices and soaring rentals have left many individuals, like Edward (not his real name), a tenant in Singapore, seriously considering buying a resale HDB flat as a more financially viable option. 

“I signed a 2-year lease which had averted a rental hike. However, I am pretty sure it will go up next year,” said Edward who lives close to the city centre.

Edward believes that owning property might be more cost-effective in the long run, particularly with the prospect of rising rents. 

“It makes more financial sense to buy now rather than rent as I foresee it will be cheaper to pay my monthly mortgage should my rent increase,” he said.

Analysts have also observed this growing trend, noting that tenants are increasingly turning to purchasing resale flats amidst high rental prices.

“Resale prices increased by 1.1 per cent compared to March 2023, with 5-room flats rising the most at 1.9 per cent. It is possible that with rent prices remaining high, many tenants are opting to buy resale flats instead. Subsequently, with the revised ABSD rates from 27 April 2023 onwards, there is expectant pressure on rental demand (and prices), prompting spillover demand from tenants as they reinvest and buy HDB resale flats,” said Hakim.

With the demand for properties in Singapore remained robust, the government has stepped in to cool the market. 

The recent increase in Additional Buyers Stamp Duty (ABSD), which affects second-timer Singaporeans and first-time foreign property owners, aims to rein in property speculation. 

Push factor to Malaysia?

With 2-room HDB flats now hovering around the $300,000 mark and million dollar HDB flats becoming this norm, could this push potential biuyers to Malaysia?

Not quite.

Yusoff (not his real name) is among one of the few Singaporeans who is packing his bags after recently selling his 2-room HDB flat in Woodlands for slightly above $300,000.

“My wife recently passed away while my relatives are all in Malaysia. It makes sense for me to retire there,” said Yusoff.

Indeed, the first quarter data of 2023 from HDB showed that such flats were transacted at a median price of $330,000, $325,000 and $315,000 in Punggol, Sembawang and Yishun respectively.

That is almost enough to buy a private property in Malaysia where the minimum purchase price in most states is at RM1 million, including in Johor.

However, not everyone is in the same predicament as Yusoff. 

Edward, for instance, is staying put.

Despite these cooling measures, the idea of buying properties across the causeway in Malaysia may not be as enticing as it seems.

“There are many push factors such as the lack of liberal values in a predominantly Muslim country. Also, Malaysia appears to be unstable both politically and economically,” said Edward.

While the affordability factor in Malaysia's property market may initially catch the eye of potential buyers, it is worth noting that property overhang for residential properties continues to be a serious issue.

Johor, for instance, continues to be the leading state for residential overhang at 5,348 units, the third quarter of 2023 data from the National Property and Information Centre (NAPIC) showed.

This would put pressure on the secondary market causing investors to suffer a loss as in the case of Country Garden Danga Bay.

Additionally, concerns surrounding political and economic stability in Malaysia may deter investors who prioritise stability and predictability in their investments.

Ultimately, while the ABSD increase may lead some investors to explore opportunities outside of Singapore, it seems that the challenges and limitations associated with investing in Malaysia may outweigh the potential benefits. 

As always, conducting thorough research and seeking expert advice before making any investment decisions is crucial.

Conclusion

So, is Malaysia truly the solution to escaping Singapore's soaring property prices? 

The answer may not be as straightforward as it seems. 

While Malaysia offers some advantages in terms of affordability, potential buyers need to carefully consider factors such as political stability and the severe oversupply issue which may impact their investment.

While resale HDB and private property are now at a record high, they are seeing a slower pace of price increase.

​By Khalil Adis

As we enter the first quarter of 2023, Singapore’s property market is showing signs of resilience and stability after a turbulent few years. 

With a growing population, an expanding economy and a strong demand for housing, both the HDB and private property markets are expected to continue their upward trajectory. 

Here is a quick snapshot of what is happening in both the HDB and private property markets.
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HDB: Resale Price Index (RPI) is now at a record high

For many Singaporeans, purchasing an HDB flat remains the most affordable option for homeownership. 

“I recently bought an HDB flat in Sengkang, and I have noticed that prices have gone up significantly compared to a few years ago. However, it is still affordable compared to private properties,” said one recent buyer, Tan Siew Ling.

The HDB Resale Price Index (RPI) has been on a steady increase since 2019, and in the first quarter of 2023, it is expected to rise further.

According to the HDB’s flash estimates for first quarter of 2023 data from HDB, the RPI is now at 173.4 point which is an increase of 0.9 per cent over that in the fourth quarter of 2022. 

“This is a slower increase than the 2.3 per cent increase in the fourth quarter of 2022, and is the smallest quarterly increase compared to the last ten quarters,” said the HDB in its press release.
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Challenges

Nonetheless, the HDB market is not without challenges. 

For example, the price gap between newly MOP-ed flats and those in older HDB estates vary greatly.

One such buyer is Amy and Khai who are finding that newly MOP-ed 3-room HDB flats, priced at more than $400,000, to be beyond their budget.

With a combined monthly income of less than $3,000, CPF of around $30,000 and loan of around $180,000, Amy and Khai can only afford to purchase flats in older HDB estates.

In the end, they narrowed down their search to a flat in Jurong West to be near their parents to qualify for the Proximity Housing Grant.

While the asking price is significantly cheaper at $350,000, it comes with its own set of challenges.

For instance, Amy and Khai are subjected to a pro-rated CPF usage since the remaining lease does not cover the age of the youngest buyer up to the age of 95.

As Amy’s age is 30 and the remaining lease is 60 years, the couple’s HDB loan and Enhanced Housing Grant had to be pro-rated.

Fortunately, with the increase in Family Grant from $50,000 to $80,000, Proximity Housing Grant of $30,000 and Enhanced Housing Grant, the grants went a long way in helping the young couple finance their flat purchase.

“Our agent was very helpful in helping us do our financial calculations and recommend properties within our budget. Within one viewing, we decided to make an offer for the flat in Jurong West,” said Khai.

“The government has imposed stricter loan-to-value ratios on buyers for HDB flats with a remaining lease of less than 60 years. This has resulted in a slower market for older HDB flats,” said analyst, Lim Hui Shan.

Nonetheless, the HDB market is expected to remain stable and resilient.

“Resale prices ceased to increase for the first time since June 2020, putting an end to the historic price rally that lasted for 31 consecutive months, as most room types experienced no increases in February 2023 except for 3-room flats. Following the Budget announcements, first-time HDB resale flat buyers can now enjoy higher amount of grants which should ease any concerns on affordability. As such, we expect demand to remain solid for the rest of 2023,” said Pow Ying Khuan, head of research, 99 Group.

Private property market: Increase in ABSD has impacted luxury properties

The private property market in Singapore has also experienced steady growth over the years. 

According to the Urban Redevelopment Authority (URA) flash estimates, the Private Property Index (PPI) has increased by 6.0 points from 188.6 points in fourth quarter of 2022 to 194.6 points in first quarter of 2023.

“I recently purchased a condo in Pasir Panjang and I’m really happy with my investment. I feel that the property market in Singapore is relatively stable and resilient,” said one investor, Johnathan Koh.

However, the private property market faces its own set of challenges. 

The government has imposed an increase for the Additional Buyer’s Stamp Duty (ABSD) for foreign buyers (from 20 to 30 per cent) and local buyers (from 12 to 17 per cent) purchasing a second property.

Analyst, Cheryl Lim, commented that “the ABSD has affected the demand for private properties, especially for high-end luxury properties. However, there is still demand for affordable and mid-range properties.”

Despite the challenges, the private property market is expected to remain stable and continue to see growth in the first quarter of 2023.
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In conclusion, the Singapore property market remains resilient and stable, with both the HDB and private property markets showing positive signs of growth.

In less than six years, Malaysia has seen five different  prime ministers and the cancellation of several mega projects including the Kuala Lumpur–Singapore high-speed rail (HSR).

Combined with its weakening ringgit, they have had an impact on the perceived political stability of the country and affected investors’ confidence.

While Singapore’s and Malaysia’s foreign ministers have recently reaffirmed ties and announced the completion of the Johor Bahru–Singapore Rapid Transit System (RTS Link), buying activity among Singaporeans particularly in Iskandar Malaysia remains muted.

Nevertheless, demand for the mass market housing segment will continue to be robust across Malaysia in 2023 judging by the volume of new launches for affordable homes in the third quarter of 2023, data from the National Property and Information Centre (NAPIC) showed.

According to NAPIC, of the 8,226 units launched during the quarter, 48.2 per cent (3,996 units) were priced below RM300,000 suggesting that they were geared towards local buyers.

Of this, 67.8 per cent (5,581 units) comprised high-rise development while 32.2 per cent (2,645 units) are landed properties.

Despite this, property overhang continues to be a serious issue across Malaysia that appears to have been further exacerbated by the impact of Covid-19.

From Johor to Kuala Lumpur, the number of unsold residential units has continued to remain consistently high with no sign of relief, since NAPIC started tracking the data.

Nevertheless, buying activity has rebounded strongly from 61,283 units transacted in the third quarter of 2021 to 105,204 units transacted in the same quarter in 2022, suggesting a recovery in the property market.

Of the 105,204 units transacted, 64,989 units or 61.8 per cent are in the residential sector followed by commercial and industrial at 8,570 units (8.1 per cent) and 2,213 units (2.1 per cent) respectively.

Johor

Johor continues to be the leading state for residential overhang at 5,348 units followed by Penang and Selangor at 5,222 and 4,386 units respectively as of the third quarter of 2022.

In the serviced apartment sector, Johor also had a whopping 14,780 overhang units followed by Kuala Lumpur and Selangor at 5,346 and 2,586 units respectively in the same period.

This suggests there is a severe mismatch between what buyers can afford versus what developers are offering.

In Johor, the supply glut has affected prices in the secondary market.

For example, at the peak of the market, condominium units in Iskandar Puteri, Danga Bay and Medini were launched at an average price of around RM1,000 per sq ft.

Country Garden Danga Bay, for instance, is now listed on property portals with an asking price of around RM600 per sq ft.

Over Iskandar Puteri, Teega @ Puteri Harbour was launched at around RM600 per sq ft and is now asking for around RM630 per sq ft.

Similarly, Meridin @ Medini is now asking for around RM580 per sq ft.

The only exception is Ujana which was launched at around RM250 per sq ft and is now asking for around RM450 per sq ft.

Nevertheless, the data suggest that the oversupply situation has stunted capital appreciation for residential properties.

With many good deals to be sought in the resale market, this may favour first-time homebuyers who are looking for a completed property in move-in condition.

The auction market is also another place that investors may want to look into for below-market-value (BMV) as such deals at public auctions have become ubiquitous due to the impact of Covid-19.

While such properties may offer good deals, due diligence is important as there are inherent risks involved. 

Still, there are bright spots in Johor once the RTS Link is scheduled to be operational by the end of 2026, following a meeting on 16 January 2023 with Singapore's Foreign Affairs Minister Dr Vivian Balakrishnan and Malaysia’s Zambry Abdul Kadir.

Connected to the Thomson-East Coast MRT line (TEL), properties around the Bukit Chagar and JB Sentral areas may see their resale value increase due to the enhanced connectivity that will spur cross-border investment in tourism, real estate and retail industries.

Unfortunately, we are unlikely to see the resumption of the Kuala Lumpur–Singapore high-speed rail (HSR) project anytime soon.

As such, the outlook for properties around the Gerbang Nusajaya, Iskandar Puteri, and Medini as well as around the planned areas in Batu Pahat and Muar will continue to be muted.

We are also unlikely to see robust buying activities for residential properties among Singaporeans and foreign investors like those seen in 2010.

Selangor

The growth areas in Selangor will be those along the Putrajaya Line spanning from Kwasa Damansara through the Klang Valley and to Putrajaya Sentral.

The second line of the Klang Valley MRT Project to be developed, full service is expected to start in January 2023.

Kwasa Damansara, in particular, will be home to transit-oriented developments (TODs) that will include affordable homes, three shopping centres and a hotel.

Spanning 64 acres and with a gross development value (GDV) of RM8 billion, the township will be served by Kwasa Damansara and Kwasa Sentral MRT stations.

Another area to watch out for is around Sierra MRT station which is developed by IOI Properties.
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Located on the southernmost tip of Puchong, Sierra is poised to enjoy the economic spillover benefits from three major government projects - KLIA Aeropolis, Malaysia Vision Valley and Cyberjaya City Centre in Cyberjaya.

Speaking of Cyberjaya City Centre, Cyberjaya City Centre MRT station is a TOD project to be developed by Malaysian Resources Corp Bhd (MRCB) with a development plan spanning 20 years.

Phase one is expected to generate a gross development value (GDV) of RM5.35 billion.

It will feature a 200,000 sq ft convention centre, a 300- to 400-room business hotel, low and high-rise office buildings and a retail podium.

Kuala Lumpur

With travel restrictions now lifted, Kuala Lumpur will continue to see strong interest for high-end properties among local and foreign buyers in KLCC, Bukit Bintang, Bangsar, Mont Kiara, Sri Hartamas, Bukit Jalil and Damansara Heights.

Like Johor, the good deals are in the secondary market where their prices are significantly lower compared to new launches.

This is partly due to the 5,346 overhang units for serviced apartments in Kuala Lumpur as NAPIC’s data showed.

Nevertheless, the rental yield for such properties will likely be below 3 per cent due to the high purchase price versus their asking rent on property portals.

Investors are also likely to face a negative cash flow as the rentals will not be able to cover the mortgage.

For example, a property priced at RM880,000 will have a mortgage of RM3,609 over 30 years at an interest rate of 4.6 per cent. 

With an asking price of around RM3,000 in Kuala Lumpur, this means investors will have to top up the difference in cash.

Additionally, properties along the MRT3 Circle Line will be highly sought after. 

Unfortunately, developers will continue facing difficulties in off loading their high-end developments in Kuala Lumpur unless high-impact transportation  project like the HSR is implemented.

Penang

The growth areas in Penang remain unchanged in Batu Kawan and some parts of Seberang Perai.

Since the opening of the Second Penang Bridge, Batu Kawan has seen rapid developments from several renowned developers such as EcoWorld and Tropicana as well as the opening of IKEA.

While connectivity remains patchy at Batu Kawan, there is a planned Bus Rapid Transit (BRT) system for Batu Kawan as part of the Penang Transport Master Plan.

In Seberang Perai, the growth areas will be along the planned Raja Uda-Bukit Mertajam Line to connect the northwestern region to the southeastern region.

For those who can afford to buy a property on the main island, areas along the Bayan Lepas LRT line will be the new growth corridor.

However, the LRT project has been hit with a series of delays since it was announced in 2015 as part of the Penang Transport Master Plan.

Comprising 19 stations along a 22 km line, the project was supposed to begin in 2018 but has yet to begin construction due to issues of funding between the state and federal governments.

So until this political issue is resolved, we are unlikely to see the full implementation of the Penang Transport Master Plan.

Conclusion

The Malaysian economy is still reeling from the impact of Covid-19.

Against a weakening ringgit and an RM1.5 trillion national debt, improving connectivity between Singapore and Malaysia may resolve its woes, particularly in Johor.

Unfortunately, Malaysia also has a history of flip-flopping on its policies such as having a rival special economic zone in Forest City (as opposed to the one that was initially planned for Medini) and the cancellation of the HSR project.

As we speak, the Johor state government recently announced that it is exploring the possibility of ferry services between Puteri Harbour international terminal and Singapore.

However, according to local sources who were involved in the development of Puteri Harbour, this idea had been in the pipeline since 2010 but was shelved as Singapore did not see a viable need for the ferry service.

With Malaysian Prime Minister Anwar Ibrahim now in Singapore making an official visit, we could perhaps see the ferry service and HSR project being discussed.

“Connectivity, some long-standing issues, which we think are ripe for resolution, hopefully, and opportunities for the future in both the digital and green economy space. I expect it will be a very useful, significant meeting. As I said, it will set the agenda, set a timetable for the ministers and the respective ministries to follow up,” concluded Dr Balakrishnan on his recent bilateral trip to Malaysia on 17 January 2023.

In addition, Malaysia also needs to resolve its severe oversupply of residential properties by regulating the market to prevent a mismatch in demand and supply.

The government could also offer incentives to local developers to build affordable homes. 

To learn from Singapore's case study, the Local Government Development Ministry is inviting experts from the Housing & Development Board (HDB).

"The ministry will examine case studies for best practices on housing policies in other countries including neighbouring countries such as Singapore that have shown success in providing the public with affordable housing,” the ministry said in a statement.

However, as land is a state issue, implementing this will be a challenge for the federal government as they do not have a central government body like Singapore’s Urban Redevelopment Authority (URA) and HDB.

Such is the case for Medini whose special economic zone was planned by the federal government and Khazanah Nasional while the one in Forest City was mooted by the state government.