A golden opportunity for agents and negotiators

Posted on
Share this article   

2940923-min

Leveraging on current trends for future success

By Joseph Wong

As a real estate agent or negotiator, the demand for affordable housing in Malaysia represents both a challenge and an immense opportunity. While the market continues to thrive, with residential properties leading the way, there is a clear need for more affordable options to cater to a growing segment of the population. 

The recent insights shared by Juwai IQI co-founder and group chief executive officer Kashif Ansari highlighted the potential in this sector and how agents can leverage these trends for future success.

For those in the property industry, it is evident that the broader market is booming post-pandemic. The numbers are staggering. In the first quarter of this year alone, property transactions surged by 17.2%, with their total value skyrocketing by 34% compared to last year. Residential property continues to be the driving force, accounting for over 63,000 transactions, vastly overshadowing the 41,000 deals combined across commercial, industrial, agricultural and land sectors.

From an agent’s perspective, this is a clear indicator of where to focus. Residential properties, particularly affordable housing, present a thriving market that needs more skilled negotiators to guide buyers and sellers.

Largest segment of the home market

With 36% of all new residential launches in the first quarter priced below RM300,000, it is evident that affordable housing is the most significant segment in the current market. Moreover, under the 12th Malaysia Plan (12MP), the government has already constructed 400,000 affordable homes which is 60% of its 2025 target. This accomplishment is impressive, especially considering the delays caused by the pandemic.

For agents, this translates into ample opportunities. Homes priced between RM150,000 and RM300,000 in desirable locations are in high demand but even properties up to RM500,000 in prime areas can be classified as affordable for those in the higher income bracket. By understanding the pricing dynamics and demand trends, negotiators can position themselves as specialists in this niche, offering clients valuable insights and options, said Ansari.

A guide for agents and negotiators

As negotiators, it is essential to understand the principles behind affordable housing to better serve their clients. According to Ansari, the first key principle is that affordable housing must be liveable and well-built. Quality design and construction are crucial and these aspects significantly impact the long-term satisfaction of homeowners. Familiarity with architectural guidelines, such as the CIDB Affordable Housing Design Standard, will enable agents to better communicate the value of well-constructed homes to prospective buyers.

The second principle revolves around sustainability. As agents, they should emphasise that developers, the government and residents must all contribute to making affordable housing feasible. For buyers, this means securing homes that are not only affordable now but also provide value in the long run. Highlighting how affordable housing developments incorporate environmental, social and governance (ESG) standards can be a powerful selling point for environmentally-conscious clients.

Lastly, it is important to be aware of the factors driving up housing costs, such as increasing land prices, construction expenses, compliance costs and financing charges (all discussed in the StarProperty Budget 2025 Roundtable). By staying informed about these challenges, agents can offer sound advice to clients and provide them with strategies for overcoming these hurdles.

Vital information

Looking towards the future, Ansari and Juwai IQI have proposed several measures that could make affordable housing more accessible, particularly in light of the upcoming Budget 2025. These proposals could significantly impact how real estate agents and negotiators approach their work.

  1. Improving quality of life: Budget 2025 could focus not only on providing new housing but also on upgrading the quality of life for residents in existing affordable housing. Initiatives like installing new street lights, building outdoor sports parks and renovating ageing homes could increase the attractiveness of these properties, giving agents more appealing options to offer potential buyers.
  2. Alleviating construction costs: The rising cost of construction materials, which has been increasing by 3-4% annually, could be mitigated if developers receive subsidies. This would make affordable housing projects more viable and give agents a larger pool of homes to market.
  3. Better financing options: One of the biggest barriers to new affordable housing developments is the cost of financing. If Budget 2025 includes provisions for discounted construction financing aimed at affordable housing projects, it could spur the creation of more homes. For agents, this would mean more properties to sell and an easier path for buyers to secure homes.
  4. Economies of scale in material purchasing: If the industry forms consortia to purchase building materials in bulk, developers could lower costs by as much as 30%. This reduction in costs would make affordable housing developments more profitable, creating more business for agents specialising in this sector.
  5. Leveraging on advanced manufacturing: Industrial construction techniques, which allow for faster and more cost-effective building, could also be a game changer. As agents, they should stay informed about these innovative techniques, as they could significantly reduce construction time and offer more homes to the market.

Foundation of thriving communities

As agents and negotiators, they are at the forefront of the affordable housing market. By staying informed about the latest market trends, government initiatives and innovative construction techniques, they can better serve their clients and help them find homes that not only meet their needs but also align with their budgets. “Affordable housing is more than bricks and mortar. It is the bedrock of thriving communities. By addressing this critical need, we are not just building homes but laying the foundation for a brighter, more prosperous future for all the people of Malaysia.”,” said Ansari.

Malaysia captures 13.2% of Singaporean buyers' inquiries, said Ansari.

"Affordable housing is more than bricks and mortar. It is the bedrock of thriving communities," said Ansari.


Stay ahead of the crowd and enjoy fresh insights on real estate, property development, and lifestyle trends when you subscribe to our newsletter and follow us on social media.

Want to contribute articles to StarProperty.my? Email: editor@starproperty.my
Related News

Fresh from the news oven

14:11 PM
News & Articles
09:08 AM
News & Articles
11:07 AM
News & Articles
Latest News

Stories and news that might pique your interest

11:11 AM
News & Articles
11:11 AM
News & Articles
12:11 PM
News & Articles
10:11 AM
News & Articles
11:11 AM
News & Articles
11:11 AM
News & Articles
12:11 PM
News & Articles
10:11 AM
News & Articles
11:11 AM
News & Articles
11:11 AM
News & Articles
12:11 PM
News & Articles
10:11 AM
News & Articles
11:11 AM
News & Articles
11:11 AM
News & Articles
12:11 PM
News & Articles
10:11 AM
News & Articles
16:08 PM
Home & Living
11:02 AM
Home & Living
09:08 AM
Home & Living
10:07 AM
Home & Living
12:07 PM
Home & Living
14:07 PM
Home & Living
01:10 AM
Featured Dev
01:10 AM
Featured Dev
00:10 AM
Featured Dev
00:10 AM
Featured Dev
00:08 AM
Events
19:05 PM
Events
18:05 PM
Awards 2024
16:05 PM
Events
15:05 PM
Events
00:10 AM
Awards 2024
09:04 AM
News & Articles
16:03 PM
News & Articles
10:02 AM
News & Articles
11:11 AM
News & Articles
11:09 AM
Featured
11:11 AM
Investment
16:06 PM
Investment
16:06 PM
Featured
15:06 PM
Investment
12:07 PM
潮樓產業
14:07 PM
潮樓產業
10:07 AM
潮樓產業
16:07 PM
潮樓產業
14:07 PM
潮樓產業
12:07 PM
潮樓產業