Despite its apparent sluggish state, Malaysia’s property market is healthier today than it was in the past few years, according to experts who shared their views in a report by The Star.
“Today, the property market is very healthy. Some may not think so, but it is very healthy,” said Paramount Corp Bhd Special Adviser Datuk Ricque Liew Yin Chew. One of his reasons for holding such a view is the absence of speculators who distort property prices.
While home sales by developers are not that great, market watchers also pointed out that would-be buyers are still on the lookout for good deals.
“At least there is activity,” said Knight Frank Managing Director Sarkunan Subramaniam.
“There are some who are going back into the market looking for bargains. Transactions have not come in yet but they are shopping around. In that sense, there are activities in the market which is good and as rightly pointed out by developers, some are seeing an improvement in their sales.”
Property developers recording better sales include SP Setia and Penang-based Bon Estates, which is undertaking a high-rise residential development in Bangsar South.
For instance, SP Setia’s President and CEO Datuk C.J. Khor observed that their sales gallery are being visited by genuine buyers who have better financial standing, instead of people who are just shopping around for homes.
“We are seeing ‘real’ buyers,” he said, adding that these buyers prefer landed homes costing between RM500,000 and RM700,000 – a category that recorded robust sales for the developer in February.
However, experts emphasized that affordability remains a concern in the property market.
“There is still a mismatch in terms of cost and affordable homes available in the market. To address this, everyone needs to play one’s part and this includes the government, developers, planners and related parties. Only then can this gap be reduced,” said CBRE|WTW Managing Director Foo Gee Jen
“This is one of the biggest challenges we will be facing over the next few years,” he added.
Among properties from SP Setia and Bon Estate are:
Setia Sky Ville @ Jelutong, Penang
Radin Ghazali, Content Writer at PropertyGuru, edited this story. To contact her about this or other stories email radin@propertyguru.com.my
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