Bank Negara: Housing market continues to be robust in 2H 2022

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KUALA LUMPUR, March 29 ― Activity in the housing market continued to be robust in the second half (2H) of 2022, following the resumption of economic activities and improved...

KUALA LUMPUR, March 29 ― Activity in the housing market continued to be robust in the second half of 2022, following the resumption of economic activities and improved employment conditions, said Bank Negara Malaysia .

Despite rising inflationary and cost of borrowing pressures, BNM said activity in the housing market is anticipated to sustain its recovery momentum, backed by the gradual improvement in income and business conditions and policy measures. It said the number of unsold housing units has been on a declining trend but remained high compared to the historical average of 151,683 units, after hitting its peak during 4Q 2021 of 183,918 units, compared with the 2015-2019 average being 130,210 units.

The slow take-up rate of these units is not expected to materially depress broader house prices, given that there are no significant concentrations of these units in key areas or projects, said the central bank. “This was a positive development in helping to reduce further risks of demand-supply imbalances,” it said.

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