Malaysia's property
market remained “relatively sluggish” during the first half due to the
recently-concluded general elections as well as prevailing issues on
affordability and speculation, according to various property reports.
For instance, a Knight Frank study revealed that residential prices and rentals in Mont’Kiara and in Kuala Lumpur City Centre's (KLCC) prime areas remained flat during the period on the back of high supply and a weak leasing market.
A research conducted by PPC International added that the country's housing market is witnessing a general slowdown. Residential transactions dropped to 17,796 units in Q1 2013 from 23,790 units a year ago, while total planned supply fell to 31,677 units from 32,472 units previously.
“The drop in the total planned supply for Malaysia could be interpreted as a sign of developers exercising caution in launching new residential projects,” said PPC.
“The average house price dropped from RM251,731 in the last quarter of 2012 to RM245,036 in the first quarter of 2013. Kuala Lumpur, Selangor and Penang also experienced a decline in average house prices.”
Meanwhile, Johor's real estate sector continues to experience brisk sales, particularly in Iskandar. Demand for housing projects close to the on-going MRT/LRT extensions is expected to remain strong, as well as resale condos in suburban areas.
“Prices of well-located high-rise properties that are managed well continue to appreciate, closing the gap between primary and secondary prices,” added Knight Frank.
For instance, a Knight Frank study revealed that residential prices and rentals in Mont’Kiara and in Kuala Lumpur City Centre's (KLCC) prime areas remained flat during the period on the back of high supply and a weak leasing market.
A research conducted by PPC International added that the country's housing market is witnessing a general slowdown. Residential transactions dropped to 17,796 units in Q1 2013 from 23,790 units a year ago, while total planned supply fell to 31,677 units from 32,472 units previously.
“The drop in the total planned supply for Malaysia could be interpreted as a sign of developers exercising caution in launching new residential projects,” said PPC.
“The average house price dropped from RM251,731 in the last quarter of 2012 to RM245,036 in the first quarter of 2013. Kuala Lumpur, Selangor and Penang also experienced a decline in average house prices.”
Meanwhile, Johor's real estate sector continues to experience brisk sales, particularly in Iskandar. Demand for housing projects close to the on-going MRT/LRT extensions is expected to remain strong, as well as resale condos in suburban areas.
“Prices of well-located high-rise properties that are managed well continue to appreciate, closing the gap between primary and secondary prices,” added Knight Frank.
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