adminKUALA LUMPUR: Malaysia’s residential property transactions are projected to increase by 15 per cent over the next five years, driven mostly by population growth, according to IQI Group Co-Founder and Chief Executive Officer Kashif Ansari.
He said population expansion would lead to the formation of approximately 582,000 new households during the period, providing a strong underlying driver for housing demand nationwide.
“Population growth alone could lead to a 15 percent increase in the number of homes purchased and that does not include demand from buyers upgrading, investors and foreign buyers,” he said in a statement today.
Malaysia’s population is expected to increase by 2.2 million people from the current 34.3 million to 36.5 million by 2030.
Ansari said based on an average household size of 3.8 people, the additional population will translate into more than 116,000 new households each year over the next five years.
This consistent household formation will continue to add buyers and renters to the market, supporting transaction activity across the country, he said.
“Selangor is expected to remain the largest contributor to housing demand with its population projected to increase by 382,000 by 2030, requiring more transit-oriented, affordable and middle-market residential developments,” he said.
Sabah is expected to record the second largest increase with an additional 283,000 residents, followed by Johor at 279,000 to benefit from stronger migration flows linked to the Johor-Singapore Special Economic Zone and Rapid Transit System Link.
Kelantan and Terengganu are projected to record population growth of more than 12 percent, highlighting the increasing need for housing in a market that previously faced a supply gap.
Ansari said the proportion of Malaysians living in urban areas was expected to increase to 79.3 percent by 2030, driving the continued need for housing, infrastructure and support services.
— BERNAMA
