According to real estate services firm C H Williams Talhar and Wong Sdn Bhd, residential property prices in Malaysia will continue to rise 10 to 15 per cent this year. Managing Director Foo Gee Jen said this is attributed to sales for new housing developments driven by high demand for residential properties in the country.
Speaking at the company’s Property Market Report 2013, Foo said, “Areas of high demand will be close to the high-level infrastructure projects such as Mass Rapid Transit (MRT), Light Rail Transit (LRT) and Komuter train lines.”
He further added, “A big volume correction will be seen this year. House prices will remain generally flat but prices could face upward pressure from rising material prices and other cost-push factors.”
The landed residential market is expected to continue to be in a resilient mood with stable growth although fewer new units may be launched. Developers are also trying to sustain profit margins by raising the prices of new launches and testing new grounds for affordability.
“In tandem with that, they are putting in more eco-friendly and green building features as an added value to the projects. We have seen developers veering away from high-end niche developments, switching to more mid-range products in accordance with the government’s PR1MA scheme,” Foo said.
He asserted that the outlook for the affordable housing segment is positive, expecting units in this segment to continue to find a ready market. He also said high-end residential properties continue to sell well in the major cities of Johor Baharu, Kuala Lumpur, Kota Kinabalu and Penang.