MIEA: No downturn in 2015

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KUALA LUMPUR: The property market will not see a downturn in 2015, despite the slowdown over the past three quarters, said Malaysia Institute of Estate Agents (MIEA) president Siva Shanker.

He also expects the property market to pick up in 2016 and 2017. Siva was giving a talk at the Annual Malaysian Market Outlook — Rounding Up 2014 on Tuesday.

 “The favourable outlook is due to a healthy national economy and low foreign investment exposure of 5% compared with Singapore’s 40%. We believe the property market will be consolidated in 2015 before peaking again in 2016 and 2017 based on the property cycle over the years,” said Siva.

siva_theedgemarketsBesides Siva, the property outlook on the three major property segments of the Klang Valley, Johor and Penang was presented by other MIEA representatives and Y Y Lau from JLL Property Services (Malaysia) Sdn Bhd.

In Penang, increased activity is expected in Simpang Ampat, Juru and Tambun on the mainland stemming from the second bridge which created additional access to and from the island, Penang airport and industrial areas.

MIEA Penang state branch chairman Mark Saw said investors will capitalise on the improved infrastructure.

MIEA Johor state branch chairman S Vadeveloo said the Johor property market will be healthy going into 2015 as investments are supported by positive economic growth in Malaysia and Singapore.

“This will help sustain demand. Although the slowdown is expected, it will be short term,” said Vadeveloo.

However, Vadeveloo is cautious about the sustainability of property prices in Iskandar Malaysia, especially for high rise-apartments and retail space.

“Ample supply and whether demand can keep pace with incoming supply is causing concern [over prices] of condominiums and retail spaces,” said Vadeveloo.

Meanwhile, landed homes will continue to be popular and should prices in the primary market continue to trend upwards, Vadeveloo expects buyers to veer towards the secondary market where prices are between 20% and 30% cheaper compared with similar products in the primary market.

 

This article first appeared in The Edge Financial Daily, on November 14, 2014