Real estate has always been considered a safe, stable and effective investment, but it is undeniable that the instability brought about by the pandemic has caused housing prices to decline in the first half of 2021.
Fortunately, property prices are trending upward in the third quarter of 2021 as the government gradually opens up the economy, but with supply is trending downward.
While industry experts remain optimistic that the market will recover substantially in 2022, many were disappointed that the government did not extend the popular Home Ownership Scheme (HOC) when it announced the budget last year.
Under such circumstances, we explore the question “is 2022 a good time to buy a home?” Let us analyze the key trends and big property bets slated for the Malaysia Property Market in 2022!
Economic Growth Projected to Expand
Improved Job Market and Boosted Financial Stability
Growth in Manufacturing and Services Sectors
1. Economic Growth Projected to Expand
With the success of the National Recovery Plan and vaccination rollout, the hopes for a better economic outlook in 2022 is looking more promising than ever. In fact, the Ministry of Finance reported through the Economic Report 2022 that the economy is projected to see an increase of 5.5% and 6.5% this year. How is this made possible? Well, simply because of the successful vaccination distribution and the continued allocation of various stimulus and subsidies aimed to support the citizens of Malaysia.
2. Improved Job Market and Boosted Financial Stability
Now that the majority of economic and social activities are allowed to open again, there is an estimated potential of increase in the service sector by 6% and the manufacturing sector by 4.7%. In addition to that the finance and insurance subsector is also expected to have a 5.5% growth as a result of continued economic recovery and continuation of investment opportunities.
As such, this will result in an increase in the manufacturing sector as well, which the Ministry of Finance predicts will go up to 11.5% in 2022.
3. Growth in Manufacturing and Services Sectors
Most evidently, Malaysia’s labor force is expected to grow significantly in 2022 as more businesses continue to resume operations. The unemployment rate has undergone a steady decrease from June 2021 and has continue to done so until 2021 ended.
As a result, financial and job security is strengthened, making people more confident behind their property purchasing decisions and revive the interest of the Malaysia property market gradually.
The Big Property Bet of 2022: It’s a New Cycle
As taken by the Property Asking Index, in Q3 2021 prices hit the bottom of the curve, meaning it could only go up from here. The new cycle marks an excellent time to buy for those who are thriving on financial prosperity!
Most signs point to the fact that 2022 is a good time to buy a house, and we shouldn’t miss out on this opportunity.
However, it is still recommended that you make sure that you have financial and career stability before you decide to buy a house, so that you can bear the long-term financial burdens in th