Malaysian Property Sector To See 10 Per Cent Growth In Transactions
KUALA LUMPUR, Feb 16 (Bernama) -- Malaysia's property sector will see a 10 per cent growth in transaction volume over the course of 24 months, says international property consultant, Rahim and Co.
Executive Chairman, Tan Sri Abdul Rahim Abdul Rahman said despite subdued growth in all property sectors in the next 12 to 18 months, foreign investments, particularly from China, would help provide the boost.
"Chinese investments currently make up about 40 to 50 per cent in Johor's Iskandar region," he added.
He was speaking to the media after the release of Rahim and Co's "Property Market Review 2016/2017" here today.
On the influx of Chinese investors, Rahim said foreign investments encourage and help spur the economy.
On another note, he said the property transaction volume had declined in 2016, with a 239,893 transactions recorded by the third quarter of 2016, a drop of 11.9 per cent against the corresponding period of 2015 at 272,296.
"If we look at the history of the property market here, there is a 10-year cycle, with a dip of about two to three years. Eventually, the market will rise again," Rahim said.
He said the commercial property sector would expand in the next two to five years, with an additional 10 million sq ft of space available.
However, the sector will continue to face challenges, as the occupancy rate was down to 79.7 per cent in 2016, compared to 81 per cent in 2015.
"This was due to the uncertainties in the global economy," Rahim said.
The Malaysian House Price Index, published by the Department of Valuation and Property Services, revealed the All-House Price Index grew slower at 5.3 in the third quarter of 2016.
Major states such as the Federal Territory of Kuala Lumpur, Selangor and Penang showed price increases had a slower momentum at 5.1 per cent, 7.5 per cent and 3.4 per cent respectively, compared to 7.7 per cent, 8.4 per cent and 6.9 per cent in the third quarter of 2015.
Rahim said 2017 would be a buyers' market with a period of adjustment and price consolidation in closing the gap between the seller's asking price and expected price of buyers.
Affordable housing remained in the limelight among the low and middle income groups, as demand currently exceeds supply.