Malaysia's property market will likely experience slower growth of around 10 percent this year compared with 11 percent growth last year, according to CH Williams Talhar & Wong in a report by Bernama.
"We will see further growth but at a very much lower pace," said Foo Gee Jen, Managing Director at CH Williams Talhar & Wong.
He noted that home price increases was primarily attributed to cost rather than demand, fuelled by higher prices of construction material and labour shortage.
On the other hand, high-end condominiums and offices will likely witness an oversupply, with supply condo units expected to see an increase of up to 50 percent, as 13,716 units would be coming in the pipeline over the next five years.
Meanwhile, condominium rentals and occupancy rates could see a downtrend this year but good demand for condominium properties will likely see an increase in areas such as Mont' Kiara and KLCC.
In a report by StarBiz, president of the Malaysian Institute of Estate Agents (MIEA) Nixon Paul said it is better to invest in the high-rise market now as per this forecast.
"We are one of the cheapest in the region and if you are looking to invest over the long term, say 10 years, now is a good time to get into the condominium market. Over the next decade, prices will appreciate."
He noted that increasing property prices in the country had forced many home buyers to acquire property away from the city.
"I do feel sorry for the average guy, but if you look anywhere else in the world, it's a natural progression. Those who can't afford it live further away from the city."
MIEA predicts a slowdown in the high-end residential property sub-sector this year, as many property hunters likely to maintain their wait-and-see attitude due to global economic uncertainties.
"There is a lot of caution now due to the uncertainty in Europe and the United States. With fear of a potential spillover effect, most buyers are adopting a wait-and-see' approach," he said.
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