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Following the heated and deemed-by-many as the most historical general election, GE14, came to a conclusion on the 10th of May with Malaysia seeing a new political party, Pakatan Harapan, serving governance for the next 5 years tenure. We have covered the possible effects of the 14th general election on the property market here. Now let’s have a look on the property market post-GE14.

Considering that Malaysia has had a single coalition party, Barisan Nasional, ruling for the past 61 years, the nation is heading to a uncharted territories and people are paying close attention to the new ruling party (Pakatan Harapan) and how they are going to catalyse Malaysia’s economic growth. The property market too is not excluded in this eager anticipation.

Current State of Local Property Market


Embracing 2018, Malaysia has had a healthy gross domestic product (GDP) growth rate with a forecasted rise between 5.5 to 6.0 percent, one of the best in the South East Asia region. Despite that, however, the property market remained sombre until late last year due to challenging markets and the weak currency.

Not denying that the property sector is experiencing a glut, it recorded a decade-high 146,497 of unsold units by end of 2017. Consequently, many major developer companies experienced a fall in share prices, with some downing up to 30 percent. Existing issues that pertain include oversupply, insufficient demand, affordability issues, loans approval, and median wage.

Political uncertainty has led industry experts, investors, developers, and property-buyers to become more careful than before. A big portion of investments, developments, and purchases are put on hold, expected to only resume post-GE14. Many are adopting the wait-and-see attitude until the new government settles.

Positively analysing the trend from previous election years, based on the NAPIC report, the market will experience a significant rise after elections have ended. During the general election in 2008, properties valued at RM88.3 billion were sold with a growth rate of 9.9 percent y-o-y. In the 2013 general election, transaction value grew for another 6.7 percent, gaining a total of RM152.3 billion. Hence, it is too early to say what is unfolding for the market in the aftermath of GE14.

Mixed Reaction from Experts

"The market will need more time to stabilise before picking up again later in the second half of 2018," says Adzman - Source

Industry experts gave mixed reactions or expectations on how GE14 might change the property landscape. Some maintained a positive outlook, mainly driven by sentiments of renewed enthusiasm and peaking interest especially among home-buyers as compared to investors.

On the other hand, others expect that the status quo would remain, if not experiencing only a slight change. However, generally experts unanimously agree that the property market would start picking up pace on the second half of 2018 following the recent GE14.

In a statement by Virata Thaivasigamony, a CSI Property consultant, he stated that, “We expect the GE14 to set the pace for the future and to be able to restore the current lack of confidence in the local property market”.

Savills Malaysia vice-president of research, Lek Chay Tong has a contrasting opinion. “Many reasons affect house prices and the general election would seem to have minimal impact on home purchase decisions. House price growth and transaction volume in the secondary market are usually affected by other factors such as house conditions and bank lending policies, for example,” he clarified.

Chief Executive Officer of ExaStrata Solutions consultancy firm, Adzman Shah Mohd Ariffin discerns that it will take some time for the political situation to stabilise, and that the first view of the first half of 2018 will see property prices staying as they are. However, since the GE14 results brought about a drastic change in government, the market will need more time to stabilise before picking up again later in the second half of 2018.

New Government on Housing Initiatives


Highlighting on the winning government, Pakatan Harapan’s manifesto adopts a familiar approach in attracting the nation’s votes by promising to address the strong buyers’ demands for affordable housing. Affordable housing referring to units priced at transaction value from RM250,000 to RM350,000 constantly pose the highest take-ups so far.

Other components of Pakatan Harapan’s manifesto relating to the property sectors would be the plan to widen the rent-to-own scheme, especially for the low-income group (B40) and middle-income group (M40) on a national scale with collaboration from commercial banks. Introducing also the affordable schemes for both private developers and the secondary market.

Maintaining prime focus on affordable housing is the setting up of the National Affordable Housing Council to centralise various related agencies. The council will be a body in charge of reforming affordable housing initiatives such as the PR1MA programme, converting land status to residential for affordable housing, providing 1 million units of affordable housing, and allocating tax incentives for developers engaging in affordable housing projects.

Formation of the Council of Elders


Creating a positive commotion with the formation of Council of Elders, Pakatan Harapan led by Tun Mahathir has assembled together some of the biggest names in Malaysia, who have each contributed to the economic progress and growth of Malaysia. Appointed members of the Council of Elders hold high expertise in various fields including banking and finance, economics, oil and gas, commodities, and more, as they gather to assist in redeveloping the nation.

On the Council of Elders include high profile members such as Tun Daim Zainuddin (former finance minister), Tan Sri Zeti Akhtar Aziz (former Bank Negara Malaysia governor), Tan Sri Hassan Marican (former president and CEO of Petronas), Tan Sri Robert Kuok (business tycoon), and Prof. Jomo Kwame Sundaram (prominent economist).

Expectations are high considering members such as Tun Daim Zainuddin has had successful ventures into the property market during the 1970s, resulting in the incorporation of Sime UEP Properties Berhad. Subang Jaya and Cheras Maluri are some of the major townships under his list of developments. The limelight is also directed to Tan Sri Robert Kuok as well, a tycoon globally known for his engagement in commercial development, especially with his internationally renowned Shangri-La hotels and resorts.

The nation has donned their magnifying glasses with high anticipation on how the Council of Elders are able to leverage their advisory opinions and knowledge to assist Pakatan Harapan’s ruling, specifically in the attempt to strengthen the local property market in the upcoming years. For what will happen in the near future, only time and skill will tell.


Foreseeing a shift of interest in the property market from high-end residential developments to affordable housing projects would be the main theme of 2018. The elected Pakatan Harapan’s future plans relating to the property market would largely benefit industry players who are ready to jump into the affordable property bandwagon. Hoping to increase housing demand and transaction volume through these efforts, the outcome of GE14 is clearly favouring home buyers.

Keen to know more? Head to and click on our Discussions page for more property insights now.    

(Written by: Aisyah Shukor, 17th May 2018)


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The Buku Harapan (150 pages) is a good read for those who have time to spare... 

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Pakatan Harapan - Full of Hopes !! 

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Hope the new government can fulfill all promises... and make Malaysia Great Again!

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Exciting times are ahead for Malaysians. I am glad to be part of it. :^)

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@admin_ps thank you for your great sharing