Property Market Reaches Maturity, Says Valuation And Property Services Department
KUALA LUMPUR, April 18 (Bernama) -- The property market has reached maturity with the bulk of transactions dominated by the secondary sub-sales segment, said the Valuation and Property Services Department today.
Director-General of Valuation and Property Services Dr Rahah Ismail said 80 per cent of the country's property transactions were driven by the secondary market due to ample market supply.
"At the moment, there is enough supply. You need to have a niche for first time house buyers. We have to understand the composition of the market," she told reporters after the launch of the Property Report 2016 by First Deputy Finance Minister Datuk Wira Othman Hamzah here today.
Rahah said property developers must respond to the need for affordable housing as it continued to be in demand with more than 65 per cent of transactions last year being within RM300,000 and below.
"As Malaysia moves to become more developed, we also have more housing development. At this point, we have close to five million houses and 800,000 in the pipeline. This is a lot of housing available in the market and can’t expect new launches like before.
"If developers are undertaking new projects, they must have the right product and pricing. We can’t just look at the primary market alone and must also consider the secondary market as well," she added.
The number of new launches declined to nearly 53,000 units in 2016, a fall by 9.8 per cent compared to more than 58,000 in 2015, while the sales performance was also lower at 31.4 per cent when compared with 42.1 per cent previously.