By Farah Wahida:
More affordable houses will be available, especially within the Klang Valley, as developers are expected to design smaller houses priced around RM350,000 each, according to CH William Talhar and Wong Managing director Foo Gee Jen.
Foo said findings of the report showed that landed residential property are still in demand, with average prices predicted to increase 10 percent to 15 percent this year. Overall, transacted residential properties last year stood at 272,669 worth RM67.80 billion.
“This is a good reflection in the stability of the residential market as this sector makes up almost 70 percent of the entire property market. In 2012, we saw a drop in volume of residential units but a rise in value,” he said.
However, outlook for condominiums was not as strong as residential, with occupancy and rental rates in Kuala Lumpur slowing down.
In 2012, luxury condominium occupancy rate was only 67 percent.
Foo noted that scarcity of land led to developments of more SoHo units. Although they gained favourable take up rate, concerns arise on the actual usage of units.
“The owners of older residential and condominiums are facing difficulties attracting tenants as most people can afford to rent new places at the same rate as these secondary units. Landlords need to upgrade their units with more facilities and increase the aesthetic value of their areas.”
With the 2012 stable office occupancy rate in the Klang Valley at 87 percent, he added that the property market might experience an oversupply of office space as the sector is expecting another 5.6 million sq ft coming up this year.
Farah Wahida, Editor of PropertyGuru, wrote this story. To contact her about this or other stories email farahwahida@propertyguru.com.my
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