Zerin Properties managing director and CEO Previndran Singhe believes that while the property market has more than enough supply of affordable housing, it lacks the “right housing products” to meet the high demand for affordable homes.
“The oversupply is due to product mismatch as [some affordable housings] do not meet the requirements of homebuyers in terms of affordability, location and connectivity as well as quality, hence, affordable housing will remain as the main focus of the government,” he said.
He observed that transit-adjacent developments (TADs) and transit-oriented developments (TODs) will remain attractive to first-time homebuyers and will have greater capital appreciation due to increasing demand, reported The Edge Markets.
As more infrastructure projects get off the ground, Previndran sees opportunities for the primary and secondary markets in existing developments or new areas as accessibility progresses and business activities become increasingly robust.
Currently, TADs and TODs are generally concentrated in the Greater Kuala Lumpur area, with more expected to come with the East Coast Rail Link (ECRL) project and the possible revival of the High-Speed Rail (HSR) and MRT Line 3 projects.
READ MORE: The 5 Transit-Oriented Developments (TOD) You Need To Check Out!
He believes that upcoming projects, such as MRT Line 2 and LRT 3, will be a catalyst for new growth potential along their routes and areas surrounding the stations.
He also expects homes at strategic locations and priced at RM500,000 and below to enjoy good demand.
Other hot spots likely to emerge are Cyberjaya, Shah Alam, Tun Razak Exchange (TRX), Klang, Bandar Malaysia, Putrajaya and Cheras, thanks to mega infrastructure developments within these areas.
Meanwhile, he pointed to retirement villages as another growing market as demand for these villages are forecasted to grow. By 2020, one in every 10 Malaysians will be 60 years old or above.
Buyers of retirement villages are mostly senior citizens and retirees who plan to move into smaller spaces that are near appropriate professional care and facilities.
However, Previndran noted that most people in their mid-30s and 40s are planning to spend their retirement at residential properties within sub-urban areas.
Image source New Straits Times
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