Property players give mixed views on effects of economic crisis

Several property players have cited mixed opinions on the impact of the economic crisis in the US and Europe on the Malaysian real estate market.

“Property prices in Penang cannot continue on an upward trend forever. The weakened condition of the equity market will influence the capacity of investors to inject funds into the property market,” said Mark Saw, Managing Director at PPC International Sdn Bhd.

Chandra Mohan Krishnan, Managing Director of Azmi & Co (Penang) Sdn Bhd, believes there will be some minor corrections in local real estate prices due to the crisis in the US and its effect on the local equity market.

”But I believe that the impact would be short-term. The longer-term impact on local property prices would be political events such as the next general election,” he said.

Tan Hun Beng, General Manager of Sunway City, noted that should the crisis in the US and Europe continue for over six months, an impact will be felt by the local real estate market.

“If the crisis is resolved within six months, then the impact will be minimal,” he quipped.

On the other hand, Lim Chien Aun of C.A. Lim & Co believes that the decline of the equity market may motivate buyers to engage in property investment to dodge inflation.

“The conditions are ripe for another round of investment to move into properties. But whether the investments actually come into the local property market will depend on the political stability of the country,” Lim added.

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