Malaysia's real estate market is going to recover very soon, 6 months after the recovery of banking stock
The share price of Malaysian banks is charting a new high almost every month since Oct 2021.
In Malaysia's banking system, more than half of the loan is disbursed for the purposes of purchasing a property. Here's a chart showing the total loan disbursed by Malaysian banks. Property loans made up of approx half of their loans disbursed, followed by working capital loans.
![](/files/my/blog/img/bl2701_20220218_banking_loan_disbursed.jpeg)
You can say Malaysian banks rely on property loans to earn their profit. If the market is expecting a better financial result delivered by banks, it also means the demand for property loans is expected to grow and the non-performing loan of arises from the property segment is going to decrease.
These can only lead to a conclusion, Malaysia's real estate market is going to recover very soon. Usually, there are 6 months lagging effect between the recovery of banking stock and the real estate market. Hence, we might see a property market rebound soonest by Mar 2022.
To check out the price index of Malaysia property, check out the tools here: Malaysia Property Price Index
To check out how the loan disbursed by the Malaysia banking system changed over the last 15 years, check out the tools here: Malaysia Loan Disbursed
Source: iSquare Intelligence