Members of the Malaysian Institute of Estate Agents (MIEA) is positive with the property market in 2018 despite the hike in the overnight policy rate (OPR).
Moreover, the market is also shifting towards affordable residential and landed housings despite poor outlook for retail space, luxury serviced apartments and small office home office (SOHO) units.
MIEA president Eric Lim said given the strong economic growth, low unemployment rate and young demographic, sales of properties will go up as the market has been correcting itself with more genuine and first-time buyers purchasing properties.
Lim explained that members are predicting moderate growth after the weak demand in properties over the past two to three years and that the market is correcting itself.
“It is getting rid of the speculators as we see more first-time and genuine buyers coming forward to buy homes,” he told a news portal.
“Buyers nowadays are more genuine, they either buy properties for their own use or for investment. With that, Bank Negara Malaysia (BNM) might have met their objective and, I think they should loosen up a little bit,” he added.
Lim told media reporters that newly launched Digital Free Trade Zone, coupled with rising crude oil prices would be significant catalysts for economic growth, which will further lift the property market.
“In addition, the overall housing loan approval rate last year remained high at 74.2 percent in the first quarter of 2017, even with the tight ruling for loan application by BNM,” he added.
Meanwhile, MIEA conducted its flagship Property Market Sentiment Survey amongst its members and practitioners.
Findings of the survey saw the rental market to be good in 2018 which was further supported on the 50 percent tax exemption on rental income received.
Additionally, the majority of respondents felt that infrastructure projects will contribute positively to the property market, citing rail-linked transportation project in urban centres are expected to create greater impact.
This article was edited by the editorial team of PropertyGuru. To contact them about this or other stories email editorialteam@propertyguru.com.my
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