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Property Market To See A Gradual Slowdown Next Year
By Zarul Effendi Razali
KUALA LUMPUR, Dec 22 (Bernama) -- The Malaysian property market is likely to see a gradual slowdown next year, taking into consideration the uncertainty in the global economic situation.
President of Fiabci Malaysia, Yeow Thit Sang, said the high end residential units were already seeing a slowdown both in pricing and the take-up rate.
"There are less expatriates from multinational companies (MNCs) coming here and rentals with a yield of between six and eight per cent are no longer achievable.
"Investors in these units will have to wait longer to realise their investment. The slowdown in global economy is definitely affecting the high-end property market," he told Bernama in an interview recently.
He also saw a fallout for office space next year, saying the category was already overbuilt and the overhang felt in the market with rental falling and a slow take-up rate.
However, there is a huge demand for low medium and medium cost residential units below RM300,000 with most developers building high-end units to cash in on the good time.
"The government's effort in building such units in joint venture with developers will help the low income earners to own affordable homes.
"Building such units will not be fast enough to relieve the pent up demand over the last five years," he added.
Meanwhile, Zerin Properties' Chief Executive Officer, Previndran Singhe, said the slowdown in the property market would only last in the first quarter next year and the industry will be stable afterwards.
"Prices will remain stable, with asking prices, not values, becoming more reasonable as owners check their values to real pricing.
"At present, sentiment is down due to the eurozone financial crisis and the US double dip fears, which has been faring for a long time, but I think we are more Asia focused," he told Bernama.
If and when China goes on reverse gear, then there would have to be concerns in the market, otherwise, barring external shocks, the industry should have a stable year next year, he said.
Contrary to common belief and expectations, the property market has registered 214,764 transactions worth RM64.75 billion within the first half of 2011.
Against the first half of 2010, the volume and value of transactions recorded double digit growth of 18.1 per cent and 29.7 per cent respectively.