Market Report: The Effect of Interest Rates on Housing Prices in Malaysia

Authored by: Dr. Lee Nai Jia, Head of Real Estate Intelligence, PropertyGuru Group

Since the beginning of the second half of 2022, interest rates have been on an uptrend due to inflation. Higher oil prices led to increased inflation, leading central banks worldwide to raise their policy rates to stem the inflation. In Southeast Asia, higher interest rates exerted downward pressures on home prices, but this was offset by the reopening of the borders.  

But how exactly does the fed raising interest rates affect the local housing market? In Malaysia, the effect of interest rate hikes leads to increased costs of home ownership, influencing not just overall housing prices but also mortgages and property valuation. This report seeks to understand the full impact of rising interest rates on real estate and provide valuable, real-world insights into its effects on Malaysia’s housing market.

Discover and explore more key insights (powered by DataSense) on how interest rate hikes impact the Malaysian housing market by downloading our full report below.

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